FastMatch Extends Algorithmic Execution Capabilities to All Clients

FastMatch, an Electronic Communications Network (ECN) for trading foreign exchange, has extended its proprietary algorithmic capabilities and transaction cost analysis (TCA) to all subscribers, part of its latest bid to extend its offering to a broader client base, according to a company statement.

FastMatch is currently one of the fastest growing ECN’s in the industry – the group’s latest product extension is reflective of a rise in the use of algorithmic execution that has become commonplace on the FX market over the past couple years.

Widening the Tent

Previously, the company had been offering algorithmic trading capabilities to asset managers through its AgencyFX product over the past year. However, amidst rising demand, FastMatch has now opted to extend its algorithmic capacities to a wider client base, also enabling the use of its TCA products and services.

The extension is important as all clients utilizing FastMatch algorithms will receive automated TCA reports upon completion of their orders, which show the algorithmic execution performance versus arrival price – additionally, users will also have access to midpoint and other benchmarks. FastMatch midpoint is calculated by the platform every millisecond and published to all market data consumers allowing them to independently verify FastMatch TCA reports.

According to Dmitri Galinov, CEO of FastMatch, Inc., in a recent statement on the algorithmic extension: “Asset managers have been successfully using FastMatch’s algorithms for over a year and a half. Now FastMatch will offer these algos to everyone. There are two significant differentiators of FastMatch algorithms versus other providers.

“First, FastMatch operates an ECN where Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term for algorithmic execution is customized to provide minimum spreads and minimum market impact. Second, FastMatch algorithms rely on proprietary patent-pending flexible matching logic for execution. Flexible matching is a sophisticated order routing system that prioritizes Liquidity Providers Liquidity Providers A liquidity provider (LP) constitutes either individual and/or institution that functions as a market maker in a given asset class. Broadly speaking, liquidity providers will act as the both the buyer and seller of a particular asset, thus making a market. In the equities space, many stock exchanges rely on liquidity providers who make the commitment to provide liquidity in a given equity. These liquidity providers commit to providing liquidity in the hopes that they will be able to make a profi A liquidity provider (LP) constitutes either individual and/or institution that functions as a market maker in a given asset class. Broadly speaking, liquidity providers will act as the both the buyer and seller of a particular asset, thus making a market. In the equities space, many stock exchanges rely on liquidity providers who make the commitment to provide liquidity in a given equity. These liquidity providers commit to providing liquidity in the hopes that they will be able to make a profi Read this Term based on their price, historical fill rates, response times and market impact for every trade,” he added.