GFXC Revises Last Look Section of the FX Global Code of Conduct*
Commenting on the announcement, the Chief Operating Officer at ParFX, Roger Rutherford, added: “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 utilized by the liquidity provider to execute a trade, for example, or if the liquidity provider always intended to reject the trade to learn more about a counterparty’s position in the market.”
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.
FX Week Europe
ParFX hosted the coffee breaks at FX Week Europe.
P&L Singapore
ParFX hosted the coffee breaks at P&L Singapore.
GFXC hopes for Principle 17 decision on November 15*†
Of the 33 responses received by the GFXC, six were handed in anonymously, while others varied greatly in length – from ParFX’s half-page note to LMAX Exchange’s 15-page comment – but the majority recommended the removal of the word ‘likely’ or suggested a change to the wording, with further clarification of practices.
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 trading shifts from speed back to strategy
Faced with diminishing marginal returns and exponential cost increases, electronic high-frequency trading firms that made their fortunes by focusing on low-latency trading strategies are now turning their attention to analytics and smarter trading initiatives in a drive to maintain their competitive advantage.
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."
Industry leaders attend ACI UK debate on FX Global Code and Last Look
By Roger Rutherford, COO at ParFX
The ACI-UK’s Square Mile Debates are always something to look forward to. The trade association for the UK’s foreign exchange (FX) industry regularly hosts high-profile speakers and has earned plaudits from members and non-members alike for facilitating debate on the key issues and topics at the forefront of the industry.