EBS, the CME Group-owned provider of electronic trading platforms and technology services in foreign exchange markets, said it would default
liquidity providers
Liquidity providers
A liquidity provider (LP) constitutes either an individual and/or an institution that functions as a market maker in a given asset class. Generally speaking, liquidity providers will act as both a buyer and a seller of a particular asset, thereby creating a market. In equities, many exchanges rely on liquidity providers who commit to providing liquidity in a given stock. These liquidity providers pledge to provide liquidity in the hope that they will be able to make a profi
A liquidity provider (LP) constitutes either an individual and/or an institution that functions as a market maker in a given asset class. Generally speaking, liquidity providers will act as both a buyer and a seller of a particular asset, thereby creating a market. In equities, many exchanges rely on liquidity providers who commit to providing liquidity in a given stock. These liquidity providers pledge to provide liquidity in the hope that they will be able to make a profi
Read this term non-registrants in the FX Global Code access to its EBS Direct liquidity pools from April 1. This step is part of the company’s update of its liquidity provider eligibility criteria for EBS Direct.
EBS Direct is the company’s relationship-based, quote-based forex trading platform. On the other hand, the FX Global Code is a set of guidelines first published by the Foreign Exchange Task Force of the Bank for International Settlements in 2017 to promote the integrity and efficient functioning of the wholesale foreign exchange market. .
In a statement on Monday, EBS Direct explained that the measure is intended to accelerate the industry’s transition to full compliance with the Code. However, the FX service provider noted that clients will still be able to maintain relationships with deactivated liquidity providers if they wish and after “proactively opting in to do so”.
According to EBS, other changes to its rulebook will include reducing its ‘last look
last look
Last Look is defined as the process by which Liquidity Providers (LPs) have the ability to reject trades within a specific time frame. Typically, this broker practice is used to mitigate risk while providing more favorable terms to the LP. This is due to the significant risk that can arise from poorly constructed price quotes that can be used as an advantage by latency arbitrageurs. Not all Last Look settings are the same. Last look settings tend to vary by client, trading platform, a client’s connection.
Last Look is defined as the process by which Liquidity Providers (LPs) have the ability to reject trades within a specific time frame. Typically, this broker practice is used to mitigate risk while providing more favorable terms to the LP. This is due to the significant risk that can arise from poorly constructed price quotes that can be used as an advantage by latency arbitrageurs. Not all Last Look settings are the same. Last look settings tend to vary by client, trading platform, a client’s connection.
Read this term» thresholds from 200 to 30 milliseconds as part of an update to its trading policy. The Global Foreign Exchange Committee (GFXC) defines “last look” as a practice used in electronic commerce where a market participant has a final opportunity to accept or reject a trade request made on their quoted price. In 2021, GFXC published a new guidance document on the “latest preview”, providing further clarification to market participants on the appropriate use of the “latest preview”.
Giving further details on the policy changes, EBS explained that it decided on the update after its detailed review of trading on EBS Direct showed that average ‘last look’ hold times in 2022 n were only 12 milliseconds and 96% of volumes were with liquidity providers. who have declared their adherence to the FX Global Code.
In addition to the changes noted above, the electronic trading platform provider also said it was working on improving its trading cost analysis tools. These are reporting tools that track the quality of order transaction prices and compare them to market conditions. Prices are tracked either at the time orders have been submitted or after the trade has been executed.
“As the market-leading platform for spot and forward FX liquidity, the changes we are announcing today for EBS Direct will accelerate the industry’s transition to compliance with the Global FX Code,” said Jeff Ward. , Global Head of EBS.
Ward further explained that while the company’s new business rules will create “minimum standards” for its market, the new transparency tools will help the ecosystem evolve.
EBS, the CME Group-owned provider of electronic trading platforms and technology services in foreign exchange markets, said it would default
liquidity providers
Liquidity providers
A liquidity provider (LP) constitutes either an individual and/or an institution that functions as a market maker in a given asset class. Generally speaking, liquidity providers will act as both a buyer and a seller of a particular asset, thereby creating a market. In equities, many exchanges rely on liquidity providers who commit to providing liquidity in a given stock. These liquidity providers pledge to provide liquidity in the hope that they will be able to make a profi
A liquidity provider (LP) constitutes either an individual and/or an institution that functions as a market maker in a given asset class. Generally speaking, liquidity providers will act as both a buyer and a seller of a particular asset, thereby creating a market. In equities, many exchanges rely on liquidity providers who commit to providing liquidity in a given stock. These liquidity providers pledge to provide liquidity in the hope that they will be able to make a profi
Read this term non-registrants in the FX Global Code access to its EBS Direct liquidity pools from April 1. This step is part of the company’s update of its liquidity provider eligibility criteria for EBS Direct.
EBS Direct is the company’s relationship-based, quote-based forex trading platform. On the other hand, the FX Global Code is a set of guidelines first published by the Foreign Exchange Task Force of the Bank for International Settlements in 2017 to promote the integrity and efficient functioning of the wholesale foreign exchange market. .
In a statement on Monday, EBS Direct explained that the measure is intended to accelerate the industry’s transition to full compliance with the Code. However, the FX service provider noted that clients will still be able to maintain relationships with deactivated liquidity providers if they wish and after “proactively opting in to do so”.
According to EBS, other changes to its rulebook will include reducing its ‘last look
last look
Last Look is defined as the process by which Liquidity Providers (LPs) have the ability to reject trades within a specific time frame. Typically, this broker practice is used to mitigate risk while providing more favorable terms to the LP. This is due to the significant risk that can arise from poorly constructed price quotes that can be used as an advantage by latency arbitrageurs. Not all Last Look settings are the same. Last look settings tend to vary by client, trading platform, a client’s connection.
Last Look is defined as the process by which Liquidity Providers (LPs) have the ability to reject trades within a specific time frame. Typically, this broker practice is used to mitigate risk while providing more favorable terms to the LP. This is due to the significant risk that can arise from poorly constructed price quotes that can be used as an advantage by latency arbitrageurs. Not all Last Look settings are the same. Last look settings tend to vary by client, trading platform, a client’s connection.
Read this term» thresholds from 200 to 30 milliseconds as part of an update to its trading policy. The Global Foreign Exchange Committee (GFXC) defines “last look” as a practice used in electronic commerce where a market participant has a final opportunity to accept or reject a trade request made on their quoted price. In 2021, GFXC published a new guidance document on the “latest preview”, providing further clarification to market participants on the appropriate use of the “latest preview”.
Giving further details on the policy changes, EBS explained that it decided on the update after its detailed review of trading on EBS Direct showed that average ‘last look’ hold times in 2022 n were only 12 milliseconds and 96% of volumes were with liquidity providers. who have declared their adherence to the FX Global Code.
In addition to the changes noted above, the electronic trading platform provider also said it was working on improving its trading cost analysis tools. These are reporting tools that track the quality of order transaction prices and compare them to market conditions. Prices are tracked either at the time orders have been submitted or after the trade has been executed.
“As the market-leading platform for spot and forward FX liquidity, the changes we are announcing today for EBS Direct will accelerate the industry’s transition to compliance with the Global FX Code,” said Jeff Ward. , Global Head of EBS.
Ward further explained that while the company’s new business rules will create “minimum standards” for its market, the new transparency tools will help the ecosystem evolve.
