Global Foreign Exchange Committee (GFXC) publishes revised last look guidance*
Roger Rutherford, Chief Operating Officer at ParFX, commented: We welcome the revised guidance by the GFXC relating to last look in FX. It is clear there is scope for misconduct to occur if trade information gained during the last look window is utilised by the liquidity provider to execute a trade, for example, or if the liquidity provider always intended to reject the trade in order to learn more about a counterparty’s position in the market. Such behaviour does not conform with the letter and spirit of the FX Global Code, and the revised language provides clear guidance in this respect.
FX: Stemming the tide of rising data costs*†
ParFX chief operating officer Roger Rutherford describes market data fees in spot FX as one of the most opaque areas of trading, suggesting that many platform providers offer special deals to those with the deepest pockets and different cost packages that are dependent on customers’ style of trading or overall volumes traded.
Plugging the gap*†
As Roger Rutherford, COO of ParFX, explains, for a long time, tier one banks dominated the prime brokerage space and were a key source of credit for the non-bank trading community. However regulation, capital requirement and shrinking profit margins for banks resulted in the prime brokerage market undergoing enormous change in recent years.
High-frequency traders shift from speed back to strategy*†
By Roger Rutherford, chief operating officer at ParFX: "There is a dawning realisation among all asset classes, including foreign exchange that a focus on speed is no longer enough to stay ahead of the game. Speed is progressively becoming a commodity and there has been a distinct shift away from simply looking for millisecond-advantages to utilising analytics to support smart, rather than just fast, trading decisions."
Platform capacity issues raise liquidity concerns*†
“As last look window times have decreased, LPs may also need to react or reprice in a shorter timeframe, which could also mean increased price updates per second,” says Roger Rutherford, chief operating officer at ParFX. “Although we have seen an increase in market-making activity on our platform, which is normal for a growing venue like us, we have adequate capacity and ability to scale as the business requires,” he adds.
Prime-of-Prime: A Risky Business?*†
“There are tight agreements between the PB and the prime-of-prime broker in terms of the level of permitted risk and type of controls they have in place at the prime-of-prime client level,” explains Roger Rutherford, COO of ParFX.
High-frequency trading: Speed is not the only game in town*†
“The race has become a lot faster, with an increasing number of participants in a diminishing game,” says Roger Rutherford, Chief Operating Officer at ParFX, a spot FX trading platform founded by some of the world’s largest FX trading institutions.”
How to combat bad trading behaviour in the FX market*
Roger Rutherford, Chief Operating Officer at ParFX, speaks to bobsguide about the tech (r)evolution in the FX market, the impact of bad trading behaviour, and why an equal and fair platform is good for all.
FXPB: Which Way is the Pendulum Swinging?*†
“After the SNB event there was a shift — risk and oversight departments started to increase control of the trading floor and credit officers started getting involved. This caused a shake-up predominantly in the prime brokerage space, but it also had an impact across trading in general,” says Roger Rutherford, COO at ParFX.
Buy-side gets up to speed on FX*†
In line with the rest of the industry, buy-side traders have observed trends such as rising market data costs and the negative impact of disruptive trading behaviour on their execution strategies, adds Roger Rutherford, Chief Operating Officer at ParFX.
“With this in mind, they are increasingly looking for trading environments that facilitate access to firm, stable liquidity, transparent pricing and efficient execution,” he says.