Reuters considering randomising matching in FX

Interesting to see in FXWeek an interview with Thomson Reuters Phil Weisberg talking about introducing a randomising pause on the matching algorithm for their FX spot Matching platform.

The randomising pause is being considered on the back of suggestions by clients, and follows the introduction of randomising earlier this year by ParFX, and followed by EBS. The randomising is designed to level the playing field and make the platform fairer and remove a perceived technical advantage that banks felt high frequency market making firms had.

Reuters are also apparently, considering introducing a similar randomisation pause to the FXall ECN segment of the FXall platform they bought last year (but not of course to the FXall dealer to client segment). All three platforms have now reported November trading volumes, which we covered here.

Interestingly, EBS is now considering extending the randomising pause for incoming orders, following testing on AUD/USD and USD/CHF. Currently the batching and randomising of incoming orders is set to between one and three ms, much shorter than ParFX at 20-80 ms.

2 Responses

  1. […] Last year saw a proliferation of new FX venues with no less than five FX ECNs going live, as well as some important changes to trading protocols of existing ECN venues. […]

  2. […] changes, first mooted in December follow a long period of consultation and are designed to make the platform fairer and remove the […]

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: