Silicon Valley Firm Delivers New FX Liquidity Provider Analytics
- In the aftermath of the Swiss National Bank debacle thorough analytics of a broker’s liquidity stream is indispensable
A San Francisco-based company specializing in automated trading and analysis tools for the institutional side of business is delivering a new product to the market. 4th Story has unveiled 4S.Rocky Mountain, a solution which may be indispensable for foreign exchange brokers, hedge funds and traders.
According to a company announcement made by 4th Story, the product 4S.Rocky Mountain was designed to provide insight into the flow provided by foreign exchange 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 providers (LPs). The solution delivers data about spreads, market depth, relative book position and many other metrics. Users will also have the ability to see changes in the quote book history.
Multi-asset brokers and traders will have no issues in using the solution
The solution is not limited to FX, so multi-asset brokers and traders will have no issues in using the solution outside of foreign exchange.
Aside from data collection, the 4S.Rocky Mountain provides brokers with the ability to manipulate and analyze the information without committing substantial efforts to an expensive internal development cycle.
All the tick data flow from LPs can be analyzed in depth to the millisecond level. The tool also has a useful reporting side delivering charts, heatmaps or other visualizations.
Many firms don't have detailed metrics on their LPs
Commenting on the announcement, 4th Story's CEO, Steve Smith said, “Many firms don't have detailed metrics on the composition and quality of the individual streams provided by their LPs as well as the aggregated pools that are generated from them. Our tools address this issue.”
FX brokers and traders can see a big variety of metrics. Amongst those is the time spent at different spreads by volume band, during different times of the day, median and spread percentiles by LP, liquidity depth, spread position in aggregated book, spread changes over time, the percentage of time quoting both sides of the market and so called 'bad' ticks data.
A San Francisco-based company specializing in automated trading and analysis tools for the institutional side of business is delivering a new product to the market. 4th Story has unveiled 4S.Rocky Mountain, a solution which may be indispensable for foreign exchange brokers, hedge funds and traders.
According to a company announcement made by 4th Story, the product 4S.Rocky Mountain was designed to provide insight into the flow provided by foreign exchange 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 providers (LPs). The solution delivers data about spreads, market depth, relative book position and many other metrics. Users will also have the ability to see changes in the quote book history.
Multi-asset brokers and traders will have no issues in using the solution
The solution is not limited to FX, so multi-asset brokers and traders will have no issues in using the solution outside of foreign exchange.
Aside from data collection, the 4S.Rocky Mountain provides brokers with the ability to manipulate and analyze the information without committing substantial efforts to an expensive internal development cycle.
All the tick data flow from LPs can be analyzed in depth to the millisecond level. The tool also has a useful reporting side delivering charts, heatmaps or other visualizations.
Many firms don't have detailed metrics on their LPs
Commenting on the announcement, 4th Story's CEO, Steve Smith said, “Many firms don't have detailed metrics on the composition and quality of the individual streams provided by their LPs as well as the aggregated pools that are generated from them. Our tools address this issue.”
FX brokers and traders can see a big variety of metrics. Amongst those is the time spent at different spreads by volume band, during different times of the day, median and spread percentiles by LP, liquidity depth, spread position in aggregated book, spread changes over time, the percentage of time quoting both sides of the market and so called 'bad' ticks data.