As the world’s financial products become increasingly traded in today’s electronic trading market, liquidity has become the asset of absolute importance. Perhaps the most important attribute of deep liquidity is how it provides smooth price action due to high-volume round-the-clock trading, which in turn creates more favourable conditions for all.
This is especially relevant in the Asia Pacific (APAC) region, where approximately $1.5 trillion in forex currency transactions are made each day. “One of the major issues plaguing execution quality everywhere is access to liquidity, particularly when executing block trades,” says Phillip Weinberg, co-founder and COO of Block Event.
As a result, firms are on the lookout for the ultimate piece of cutting-edge technology in liquidity that will outshine the competition and make trading easier, faster and more profitable.
One of the top concerns for brokers in APAC is finding ample liquidity for their clients’ trading requirements in a region where large trade orders have to be broken down to smaller lots in order to be executed.
Broctagon addresses liquidity constraints
One example of the latest smart technology filling gaps in the market is Broctagon’s innovative liquidity solution, which has recently been launched in Southeast Asia. Broctagon’s liquidity solution is not limited to the offering of a liquidity pool derived from a network of tier-1 banks and globally reputable liquidity providers.
It also utilizes an intelligent algorithm that uses live market data and real-time trading activity to determine the most suitable liquidity provider to send orders to as well as gauge the efficiency of liquidity supply and cost ratios.
The Broctagon algorithm does all this while cross-referencing with alternative liquidity providers to ensure a steady stream of high-quality liquidity at the most favourable prices. A continuous feedback loop is generated in the process and everything is actively measured with analytics for efficiency and improvements.
By placing excellence towards their clients’ trading performance as a top priority, Broctagon repeatedly looks for ways to enhance their liquidity solution, in doing so enabling brokers to continuously deliver competitive rates across all their product offerings.