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.
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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 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 based on their price, historical fill rates, response times and market impact for every trade,” he added.