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the middle of the bridge, says Layth Sanjaq, head 103, then you are not on a true
of operations at FXCBS. On one side, there are the ECN. It’s that simple.” Without
displaying your order immediatelybanks quoting prices into the client terminals through
or at all for everyone in the systemthe broker’s platform. On the other side, there are the
to see and act on, your broker istraders (clients) performing trades on those streamed
somehow manipulating the quoteprices. Each trade goes through the broker’s platform
behind the scenes, says Ditlove.to the corresponding bank that quoted the price and
“MBTrading’s revenue is generatedgets executed using the liquidity provided by the bank.
from the commission we charge the
retail client, and thus we offer fullTo find out if you really are trading on an ECN, says
transparency without manipulating theRoss Ditlove, CEO of MBTrading, there is a very
spread or quote,” he continues.simple test that can be employed. Ditlove explains:
“Find any currency pair on any broker’s system. For
Why DD and NDD?simplicity, use a pair with a three or more pip spread.
Let’s say the Bid is 100 and the Offer is 103. Now The reason some brokers now offer both dealing
enter an order to Buy at 101. If you and everyone else desk (DD) and non-dealing desk (NDD) FX trading
on your broker’s system do not immediately see your facilities, says Giuseppe Zagara, managing partner and
new Bid at 101, thus making the market now 101 by the co-founder at Fastbrokers.com, because NDD
“The FX ECN model can
be described as a two way
bridge where the broker is
the traffic coordinator in
the middle of the bridge”
|april 2010 e -FOREX 137
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