ION FX Trading & Execution Software for FX Liquidity Aggregation

The Electronic Communication Network (ECN) provides secure trading by combining the liquidity of primary providers and automatically matching buy and sell orders. They also select sources with the best liquidity using predefined criteria, thus ensuring better order execution. However, Liquidity providers are not the only ones responsible for the formation of a liquid market. A liquidity provider can be compared to wholesale suppliers, but instead of supplying goods, LPs provide liquidity. At its core, Soft-FX Liquidity Aggregator offers a cost-effective way to create the best possible trading conditions for your end clients. For this reason, liquidity aggregation looms as a potential pain point moving forward for the FX industry.

FX Aggregator helps you unlock efficiencies across more than 500 currency pairs globally. Fully automate cross-venue FX trading workflows from your desktop to front- and back-office processing (STP), leveraging a normalised ticket flow over our Trade Notification service. In 2010 Soft-FX started to develop a new product within the framework of the emerging need of one of the largest customers at that time.

  • The overall aggregation business model has been faced with several challenges in recent years.
  • The platform was connected to external liquidity providers through a plugin in the MT4, and clients started to move from B-Book to A-Book.
  • The rather new turn as of technology enhancements have been the aggregated liquidity solutions, which have removed the need to engage a prime broker or third party technology firm for price aggregation.
  • Although not a brand new invention to the world of Forex, this is a solution to minimize the costs of liquidity management quite significantly.

A financial technology provider with cutting-edge aggregation software, ultra-low-latency connectivity, institutional grade hosting solutions. When it comes to the functionality from the latest generation of liquidity aggregation systems, greater analytics, automated recommendation and selection of the best LPs’ for the flow you get from your client franchise are such features. “FX aggregation is only part of the bigger value chain which delivers a tradable price to the client whether it be an institutional or retail one. The ability for the trading solution to derive a distributable price from the core price is essential. It is also important to ensure that an aggregation service is tightly integrated to the distribution which allows for greater alignment between the various stakeholders in the bank,” he states.

Straight Through Processing (STP) is supported for FX Matching, FXall or third-party venues. The service can also be used for hedging in a pre-defined, low-latency environment, giving traders control and transparency. The new Refinitiv FX Aggregator is fully hosted and represents one of the most uncomplicated and cost-efficient ways for firms to enable high quality FX trading. Customise your homepage and tailor your Workspace experience to fit your workflow needs and preferences.

Because oneZero’s liquidity aggregation technology captures, manages and analyses the data that flows through its Hub, its clients are able to gain a better understanding of the flows they deal with first hand. Unlike other aggregators, the data that flows through oneZero is recorded and analysed, and the results of that analysis are fed back in to improve the performance of the Hub. The data is ultimately used to segment the liquidity flow and build liquidity pools that best suit clients’ different customer segments.

fx liquidity aggregation

Many of them have slightly different workflows or different APIs for trading and market data, meaning that trading on a single FX venue may require connecting with two or three different API specifications. Refinitiv FX Aggregator provides all clients with access to broad and high-quality liquidity across spot FX, but also offers a low cost of ownership. Monevium is a London-based money-management platform for growing businesses, including both freelancers and enterprise level entities.

For the company, it’s all about helping clients segment their flow and build a liquidity aggregation solution that provides a better outcome to all the different groups they service. “We are a company that provides both liquidity aggregation and analytics, and it’s important to understand that there’s a natural feedback loop between the two,” says Weisberg. “Helping our clients to analyse the different types of flow they have is great, but that’s not enough.

Forex aggregators provide software solution for liquidity aggregation from various sources within a single view. The aggregators support various combination of order types, currencies and tiered pricing. Forex brokers nowadays seem very interested in acquiring the services of Forex aggregators in order to satisfy the needs for lightning fast execution and effective order routing as per forex liquidity aggregation specific rules. We offer a range of features, including advanced charting tools, real-time market data, and order book depth, to help exchanges and brokerages stay competitive in this rapidly evolving market. FX aggregators play a critical role in the global FX market, facilitating price discovery, enhancing transparency, and improving execution efficiency for market participants.

The second stage, automated risk management, has progressed a lot over more recent times, but it was really the third stage, access to a reliable hedging pool devoid of manual intervention, that required tackling. Various finance institutions, banks, and huge brokers who act as counterparties ready to buy or sell the required amount of currency are a vast and integral part of the FX market. These counterparties are called liquidity providers, and they form liquidity in Forex. Forex is a platform where everyone, from a huge corporation to a beginner trader, can start making a profit from their funds. This article will discuss liquidity, how it is formed in Forex, the difference between liquidity providers and aggregators, and the latter’s benefits. By combining this method with quality liquidity aggregation and thorough risk management procedures, you can get to the point where
you are earning along with profitable clients and not losing money on them.

The risk is reduced over limits by balancing positions between different external suppliers, based on margin usage. The aggregator creates positions reconciliation between clients and external suppliers in this way, eliminating market risks, as a result of hidden undercover positions. New ways of risk minimization is what we at Soft-FX believe to be a top priority in future development of the industry.

Consequently, liquidity aggregation tools emerged to help banks track liquidity and enable their own clients to access liquidity. The tools are no longer based solely on price and take on a far more considered view of liquidity and best execution based on broader criteria and more data. FXall is the flexible electronic trading platform that provides the choice, agility, efficiency and confidence that traders want, from liquidity access to straight-through processing. For the increasing number of financial institutions trading G10 and EM, aggregation did not help them to trade in markets dominated by exchange-based trading and others where brokers still dominate.

fx liquidity aggregation

The second set of filters splices together identical layers, resolves arbitrage situations (if necessary), and anonymizes
liquidity providers. This step shapes the next iteration of market depth delivered to trading terminals and relayed through APIs. The Filters subsystem works by processing the L2s received from external liquidity providers based on parameters set in accordance with business objectives. This component allows external liquidity providers, exchanges, or aggregators to execute transactions via FIX/HTTP/AGGR API. Soft-FX TickTrader Liquidity Aggregator was designed as a software solution for aggregating liquidity from a variety of internal and external sources.

Workspace interconnects data, analytics, trading workflow and liquidity via various native workflow tools, leveraging the underlying smart technology and the native APIs. Our new workflow solution helps you address cost and productivity challenges, and features a unique, highly-customised workflow to give you the timely, relevant, trading cues you need instantly. To put NDF streaming in good stead, 360T made these products available via its existing APIs, allowing clients to choose between disclosed and anonymous as suits their needs. But, by launching an NDF streaming service in the past year, 360T wanted to change that.