Exclusive: Alpha Launches New Algo Powered Market-Making Engine

Alpha, a UK-based provider of foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (FX) and contracts-for-difference (CFD) products has unveiled a new OMS and market-making engine, helping automate large orders independently of trading desks.

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As a bespoke trading and trading solutions provider, Alpha caters to institutional clients – the launch of its new OMS utility is important as it effectively enables Alpha to automate and price large orders on the most popular FX and CFD products. Furthermore, clients will be gaining several other useful attributes, such as viewing the reflected depth of market in each tradable product through it’s API offering and it’s respective front-end GUI’s.

The new utility is also a departure from traditional FX and CFD brokers, who typically price their customers using a ‘top of book’ model. As opposed to being streamed a price that they can trade on for a limited time and up to a maximum tradable amount, clients utilizing Alpha’s new offering will be able to provide access to a competitive ‘top of book’ price.

In addition, Alpha’s market-making engine will also aim to provide clients who wish to execute larger trades the ability to do so in one ticket. This is accomplished by providing Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term that is based on predefined depth using a market standard VWAP concept. Subsequently, these algorithms, and the VWAP concept yield an ‘all or none’ trading environment to all customers.

What are the New Algos?

The CEO of Alpha, Muhammad Rasoul shared with Finance Magnates in an exclusive statement, “the algos run in real time and are incorporating new market information, price, and size tick by tick. We don’t disclose the actual Algo details, but we are happy with the work that has been done and delivered by our development teams. It’s very rewarding now for our Trading and Risk teams to see this in action.”

"The algos have rules that price up unto our max electronic trade size. In FX that is up to 50 million notional value. Alpha does a lot of bespoke order execution in single stocks, indices, metals, and FX via Voice as well so this works very well with our complete offering," Mr Rasoul elaborated.

We don’t recommend to clients that want to move above our max trade size this to be done electronically. We feel we can get a better result in the end for the customer via voice or other channels,” explained Mr. Rasoul.