Thomson Reuters Fosters Bid to Promote Transparency on FX Trading

Thomson Reuters has unveiled a new Provisory Liquidity protocol that governs participants' use of 'last look' liquidity.

Thomson Reuters has published a list of proposed operational procedures for trading protocols on its FXall platforms, including a codified and comprehensive Provisory Liquidity protocol that governs participants’ use of ‘last look’ liquidity, according to a Thomson Reuters statement.

The newly proposed Provisory Liquidity protocol is aimed to help foster improved industry standards via clear and consistent eligibility and qualification rules for price makers. Moreover, the fundamental goal of the protocol is to enable liquidity consumers to make informed trading decisions through transparent and pragmatic criteria.

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The Provisory Liquidity protocol boasts behavioural and platform controls that also are designed to help aid market participants by confidently choosing liquidity sources that best suit their respective needs, whilst limiting the impact of physical distance on execution quality.

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According to Phil Weisberg, Global Head of FX, Thomson Reuters, in a recent statement on the initiative, “As a leading independent provider of FX transactions venues, Thomson Reuters is committed to ensuring a confident and effective trading experience for all market participants on all the platforms we operate, while still offering the choice clients need to meet specific trading requirements.

Following the new Matching rules we set last year that encouraged high standards of behaviour in primary markets, the updated FXall operational procedures define the same rigorous standards for both our RFQ and Streaming Price trading protocols, where participants transact on a disclosed, relationship basis, as well as our Order Book platform, where participants trade anonymously using either firm or Provisory Liquidity.”

“Clients value choice in execution when the choices made available to them are consistently and transparently managed to the highest standard. We therefore designed the new procedures to achieve optimal conditions through a combination of objective and measurable behavioural criteria and platform controls. More than ever, clients and their liquidity providers seek actionable insight into their execution quality. We provide them with this intelligence,” he added.

Last week, Thomson Reuters made a splash by reporting its volumes for the month ending April 2015, having seen declining FX volumes MoM from March 2015.

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