FOCUS
Paying for Limit Orders
MB Trading has begun paying 1.95 per 100,000 in currency traded for Forex Limit orders posted that add liquidity to its FOREX ECN. Te company consolidates quotes from major bank liquidity providers and customers, displaying them in a fully transparent retail order book. Currently, customers pay 2.95 per 100,000 in currency executed on the MB Trading system. Tis significant change gives traders further incentive to post their Limit entries and exits on the FX ECN for all other retail participants to see.
”Tis is the next logical step for our FX ECN,” states CEO Ross Ditlove. ”Paying for Limit orders continues the drive to a fully transparent and efficient retail FOREX market place. It rewards our retail clients with lower trading costs and deeper liquidity.” He says the response to Pay For Limits has been a mix of surprise and excitement and that MB Trading’s technology is uniquely designed for this new way of handling orders.
choice of ECN for traders, says Van Cleve. “Speed is cost. If I take a trade at 3504, I’ve decided that 3504 is the right price for me. In a fast-moving market, any negative deviation from that price will cost me money and speed of execution is the cure for that.”
In terms of providing connectivity to ECNs, innovation is key says Van Cleve. “Te initial concepts that were employed when building the first retail platform to ECN bridges are archaic at this point. Technology evolves fast. If you’re not thinking, planning and developing the future bridging technology today, someone else is. Another key concept that technology providers have to get away from is the one-size-fits-all bridge. For a proper seamless integration that idea is just silly. A proper
130 | april 2011 e-FOREX
bridge integration is not one-size-fits-all, it is far closer to one-size-fits-one.”
Van Cleve says that Fair Trade Technology’s approach to providing connectivity services and developing bridges is based on quality not quantity. “We’re not cranking out a million of these a week. We’d rather produce one a year and have it revered than have a mediocre product and be recognised as such. When it comes to the technology of it all, I say let the tech guys do what the tech guys do. As a trader I do get involved in the technological side in the sense that I say ‘traders need this’ or ‘this would really help a lot of traders’. In the end though the technology company that keeps its ear to the ground and listens to traders needs is the company that will always rise to the top in this business.”
Next generation ECNs
And what are his predictions fo the future? What developments are there in the market in terms of new fee structures, new sources of liquidity and what will the next generation of
ECN platforms look like? “In my opinion, the next generation of ECN platforms will include something resembling a level 2 quote system complete with counterparties,” says Van Cleve. “Although, the fact that there is no centralised exchange in the FX market may make this a nightmare to implement. To some extent this is a concept that is more applicable to the large banks but I envisage that in the future this will be something available to all traders in the forex markets.”
Although there are some structural issues to overcome in terms of developing the next generation of platforms, ECNs are the way of the future, says Van Cleve. “Traders want liquidity, naturally, but don’t want their broker providing it or being the
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132 |
Page 133 |
Page 134 |
Page 135 |
Page 136 |
Page 137 |
Page 138 |
Page 139 |
Page 140 |
Page 141 |
Page 142 |
Page 143 |
Page 144 |
Page 145 |
Page 146 |
Page 147 |
Page 148 |
Page 149 |
Page 150 |
Page 151 |
Page 152 |
Page 153 |
Page 154 |
Page 155 |
Page 156 |
Page 157 |
Page 158 |
Page 159 |
Page 160 |
Page 161 |
Page 162 |
Page 163 |
Page 164 |
Page 165 |
Page 166 |
Page 167 |
Page 168 |
Page 169 |
Page 170 |
Page 171 |
Page 172 |
Page 173 |
Page 174 |
Page 175 |
Page 176 |
Page 177 |
Page 178 |
Page 179 |
Page 180 |
Page 181 |
Page 182 |
Page 183 |
Page 184 |
Page 185 |
Page 186 |
Page 187 |
Page 188