EBS Brokertec has launched its EBS Live Ultra service, aimed at tackling last look issues in the industry. ICAP’s electronic trading unit states that this is the firm’s fastest electronic FX data product to date. The firm is aiming to deliver real-time data to its clients, a move that is supposed to lead to more transparency and liquidity while reducing the reliance on last look practices.
The new offering has two data interval rates – one in 100 milliseconds intervals which is similar to the current EBS Live service and one which is updated in 20 milliseconds intervals, which is five times faster than the current EBS Live data product. The changes in the pricing data are enabling better price discovery and will result in more transparency and liquidity.
According to EBS, the service will enhance the FX market and will tackle practices such as last look. A continuous order book will be made possible within EBS Live Ultra and it will be available at no additional cost over the existing EBS Live service, provided that some conditions are met.
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Additional Requirements for Volumes for Clients that Wish to Use EBS Live Ultra
Clients who are willing to use the service will have to deal as a price maker of at least $200 million per day and deal as a price maker for at least 40 per cent of their weekly traded volume.
Commenting on the announcement, the Chief Strategy Officer for EBS BrokerTec, Tim Cartledge, said: “We believe sophisticated consumers of data should have an obligation to help create that data and keep the market working. Our participation criteria ensures that access to market-leading data comes with market positive behaviour rather than as a result of deep pockets.”
The EBS Live Ultra data stream is derived from EBS BrokerTec’s central limit order book EBS Market. The clients that are interested in the service might have to meet some additional technology requirements.
Commenting on the launch, the Global Head of FX eCommerce at Bank of America Merrill Lynch, Liam Hudson, said: “We welcome efforts by the market to increase the availability of data. The EBS Live Ultra service will improve price discovery for its users, and in turn, the ability to price client trades.”
“Streaming market data increases transparency and benefits all market participants, even those who are not using it directly. EBS Live Ultra will have a positive impact on the overall market ecology both on the platform itself and in the broader spot FX market,’’ elaborated the Co-CEO of XTX Markets, Alex Gerko.