Following a mediocre 2012, interdealer broker Tradition dedicated itself to platform development and has now launched its new spot forex trading platform, ParFX.
Development and Concept
Initial founder testing commenced in October last year, representing a reasonably swift transition from concept to production. Prior to the testing commencing, the initiative had already garnered a degree of support from large banks including Barclays, Deutsche Bank, BNP Paribas, RBC, UBS, and Morgan Stanley, and was joined by SEB, Standard Chartered, and State Street at commencement of the founder testing period.
In February this year, the then-named TraFXpure platform was still in its development stages when the final two banks pledged their support for the new venture, at which point it assumed its new name with which it would be taken to market, ParFX, representing the actual name of the company itself which is a wholly owned subsidiary within the Tradition Group.
The last few months have served as practical evidence that banks are keen to display common interest in supporting new platforms and investing in technology providers within the industry, and the new ParFX platform is now open to all banks able to settle via CLS.
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ParFX is focused on a growing requirement for and from the market to promote transparency and equality for all participants. The platform aims to deliver a genuinely level playing field and high-quality, efficient execution for all users. Key features include:
• Unique execution logic ensuring fair trading environment for all
• Enhanced trade cycle transparency – lit pre-trade, full disclosure post-trade
• Low-cost and easy access through industry-standard FIX protocol API
• Incorporation of trading costs into actual transaction
• Transparent trading pricing set equally for all users
• At-cost market data distributed in parallel to all active participants
• Increased competition among trading venues through high-quality and efficient execution at competitive prices
Daniel Marcus, Global Head of Strategy and Business Development at Tradition, said: “The support ParFX has received from some of the biggest spot FX market players in the world shows the appetite for a platform where all participants can engage on an equal footing. We believe that this, coupled with lower costs and greater transparency, positions ParFX as the premier option for those parties committed to providing clients with superior liquidity, transparency and execution.”
Appointment of Rob Parr
As also mentioned in Forex Magnates’ Executive Moves section, the launch of ParFX signals the appointment of Rob Parr as its first Global Head of Business Development. Reporting to ParFX COO, Roger Rutherford, Parr will be responsible for spearheading the nascent platform’s global sales effort among tier 1 and 2 banks, as well as providing market feedback on future ParFX developments.
See Executive Moves for detailed overview of Rob Parr’s professional background