RETAIL e-FX PROVIDER
>>>
of less efficient Bridges and old fashioned Retail FX broking. Say hello to sub millisecond, co-located price streaming and order execution previously only offered in the institutional marketplace.”
Avoiding risk and back office overload
Trading systems integrator Gold-i has developed the Gold-i Gate Bridge for MT4 trading. According to Gold-i chief executive Tom Higgins, one of the big challenges is the increasing trade volumes generated by the high frequency, automated, mobile an algorithmic traders that are trading through Retail FX brokers and the impact this volume is having on the back office and risk management operations of FX retail brokers.
“Brokers who “B-Book” or warehouse all trades run huge risks as trading volumes goes up and volatility increases,” says Higgins. “Te smart brokers are covering more and more business directly with banks and brokers via super low-latency technology such as the Gold-i Gate Bridge. Tat takes care of the front office side of things but the back and middle office (for risk management) must not be ignored. Te Gold-i Gate Link integrates MetaTrader with any back-end system by normalising everything to FIX 4.4 or FIX 5.0 messages. Tis allows the broker to have a proper, sub millisecond, record of all MetaTrader activity in their back-end systems. If brokers are covering some of their business and running the rest then knowing their real-time net positions and daily P&L is vital. Te newly-developed Gold-i Position Keeper is a true window on their risk and profitability.”
An increasing number of brokers are looking to reduce their market risk by offering ECN trade execution platforms to their high volume clients who could be viewed as scalpers or trade robot users, something which necessitates providing access to third party liquidity providers. Tis change in the business model represents a further opportunity for Liquidity Bridge providers, says Higgins.
“High volume clients are smart, and getting smarter. No sensible broker wants to bet against someone who wins more often than loses so covering their business using super-fast technology in the highly-liquid bank markets makes perfect sense. Low-latency, high- performance, reliability and a large list of LPs are key to making this work well. Te Gold-i Gate Bridge is measured at 99.9995% trade success rate and 1-2 milliseconds latency, processing hundreds of orders per second through a single Bridge, with more than 24 different liquidity providers.”
152 | october 2011 e-FOREX Business engines
According to Higgins, the latest generation of integrated Bridging and risk management solutions are able to acts as powerful and consolidated business engines offering low latency, STP, flexible order routing, advanced customer profiling, and wide administrative capabilities in addition to their basic liquidity management operations. “In the early days of Retail FX all broker B-booked (internalised flow), then they all started A-booking (STP) and now, with broker consolidation, brokers are mixing B and A booking. Tis requires advanced Bridges and state of the art risk monitoring systems.”
Te more functional Liquidity Bridging solutions offer feature-rich MT4 plug-ins and new technology that can assist brokers in capturing more business, improving customer loyalty and handling increasing trade loads more efficiently. “Our brokers can use multiple liquidity providers so that each asset class can be routed to the best execution venue but the end client still has a single account and true cross-asset margining. Multiple liquidity providers also give the broker more resilience and access to a much larger product set as demanded by their customers,” says Higgins.
Tom Higgins “In the early days of Retail FX all broker B-booked
(internalised flow), then they all started A-booking (STP) and now, with broker consolidation, brokers are mixing B and A booking. Tis requires advanced Bridges and state of the art risk monitoring systems.”
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 |
Page 189 |
Page 190 |
Page 191 |
Page 192 |
Page 193 |
Page 194 |
Page 195 |
Page 196