FastMatch has announced today that they are introducing fully disclosed, relationship based trading on their platform. Known for their operation of a centralized ECN on using their matching engine, the new service allows FastMatch buy-side customers to trade directly with liquidity providers that they have relationships with.
Launching the service, FastMatch joins other electronic trading platforms, such as EBS, which have introduced disclosed trading to operate alongside their legacy ECNs. As they enter this competitive market, FastMatch will be partially aiming to compete on price, as they are providing execution for 1 dollar per every million dollars notional traded; a figure that is sizeably below fees on their ECN.
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According to FastMatch, the disclosed trading service will use their existing trading network infrastructure, which includes servers in data centers in New York, London and Tokyo. The launch of the product occurs after it had previously been used by several beta customers, with customers being able to access both disclosed relationship and ECN pricing on the same system.
Commenting on what led to the launch of the new product, Dmitri Galinov, CEO of FastMatch explained to Finance Magnates that it was to provide their customers with the availability of better pricing as he stated “We have received feedback from our liquidity providers that they will price much tighter clients on disclosed basis vs anonymous. We did this to bring clients better prices.” Galinov explained further that for existing FastMatch users interested in adding disclosed liquidity, it is quick process that just requires getting a credit line allocated from the liquidity provider.