FX: XTX’s ‘zero hold time’ adds to debate over ‘last look’ practices*†
XTX believes that during the next year or so, the other major liquidity providers are likely to eliminate the hold window, although ParFX COO Roger Rutherford accepts that the market is only at the start of a change in how hold times and latency buffers are amended or removed.
Foreign exchange: the democratisation of forex trading*
"It's no longer just about making people's money move," says Roger Rutherford chief operating officer at ParFX.
Speed is losing its edge in FX*
Roger Rutherford, chief operating officer at ParFX, suggests that diminishing marginal returns and exponential cost increases have forced high frequency traders to accept that speed is no longer enough to stay ahead of the game. As a result, there has been a distinct shift towards strategy and analytics in order to make smarter trading decisions and gain a competitive edge.
China's wavering path to renminbi internationalisation*
"Bolstered by the emergence of offshore hubs in Singapore, London and Frankfurt, the currency has risen to prominence on global spot FX markets and we anticipate that renminbi-denominated trading will continue to grow rapidly over the coming years," says Roger Rutherford at ParFX.
ParFX is not for sale *†
ParFX was launched four years ago, with a group of 12 founding banks and the backing of broker Tradition. The plan was to introduce a completely new way of matching orders by applying randomised pauses of between 20–80 milliseconds in a bid to eliminate purely technology-driven advantages.
FX code of conduct finalised despite ‘last look’ loose end – Global Risk Regulator*†
“What would you prefer? Wouldn’t you rather operate in a good, robust ethical environment based on a set of agreed principles? What’s the other option?” asks Roger Rutherford, chief operating officer at wholesale electronic spot FX trading platform provider ParFX. “The other option would be increased regulation related to the way spot FX is traded.”
The technological revolution*†
Roger Rutherford expresses a paradoxical concern, however: "If regulation comes in force like the Volcker Rule, where banks are not allowed to take proprietary positions in using investors’ money – then it takes us back to the historical days where they're just there to move the money. So is it going to move away from being an asset class?"
Hardwiring best practice into spot FX trading venues*†
We welcomed the unveiling of the final Global Code and hope others follow ParFX in adhering to its principles. It closely aligns with our core ethics and values, with guidelines that strengthen the integrity and effectiveness of the foreign exchange market. It is a great step towards not only instilling renewed confidence in the market, but also creating an ecology where participants work together to solve industry issues.
FX: Randomization gains favour, despite flaws*†
However, ParFX chief operating officer, Roger Rutherford, reckons randomized matching technology has proven itself to be an effective mechanism for deterring disruptive trading behaviour in the FX market, nullifying the speed advantages of dark fibre, cross connect and low latency systems and models.
Foreign exchange market Global Code of Conduct supported*
“People on the buy-side, asset managers or hedge funds for example, weren’t aware that they were being priced in a way that was in some respects unfair”, said Roger Rutherford, chief operating officer of spot FX electronic trading platform ParFX.