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“Trading solutions” is the Future

FX market undoubtedly is one of the most major, if not the largest, markets in the world. According to CLS Bank, which offers the world’s largest multilateral cash settlement service, daily volume in January 2016 was $4.8 trillion, down 9 percent from a year earlier and a far cry from the near $6 trillion peak in late 2014. But FX the market is also a red ocean market where banks and brokers battle for a share of the market in a stage that is fiercely competitive. It has been described as a “Bloody Red Ocean” of sharks because service providers continue to strategize within a defined economic structure that is dictated by existing demand. In this market, the numbers of players are enormous which makes it very difficult for the end user to decide which one to choose.

In my opinion in this crowded market where everyone is offering commodity type products and services the future is bright for the companies that are providing solutions to the market-place.

As I interpret from the US and European Fixed Income industry benchmarking surveys 2015 there are three main challenges that fixed income trading desks are facing. The survey’s respondents were from senior buy-side fixed income professionals made up primarily of Heads of Fixed Income Trading, CEO’s and senior management of leading asset managers and hedge funds.

1. Liquidity: 
 In 2015, 50% of US respondents state their biggest challenge is sourcing liquidity when asked what are the top three challenges you are currently facing in your primary trading medium? Interestingly 73% of European respondents felt that way as well.

2. Executions measurement: 28% of European and 16% of US respondents found “Measuring Best Execution” as one of the biggest challenges their trading desks are facing.

3. Cost Effectiveness:
18% of respondents chose “Cost Effectiveness” as the most important factor when choosing a broker.
To solve traders’ problem and challenges, having a trader’s mind-set and background will provide a huge help. Tradeview Markets has taken a different path in the industry by hiring sales consultants with a strong trading back-ground. This approach has enabled US (Trading consultants) to think like a trader and understand the needs and “unmet” needs of other traders in one of the largest markets in the world.
Tradeview Markets, as one of the pioneer trading houses in the industry answers the above mentioned challenges through the following solutions:

Innovative Liquidity Connector®.
This innovative solution sources liquidity from clients, banks and non-bank liquidity providers. Liquidity is tailored to individual trader requirements. This solution connects the trader to the pool of liquidity provided by banks, brokers and other traders. Trades are priced with multiple counter parties and then executed at the best price. In sourcing prices, the desk is able to aggregate normal market spreads narrower, especially when pricing emerging market trades. The FX desk also uses numerous trading platforms to source the best prices available on the market. In addition to source the liquidity Innovative liquidity connector helps providing consistent tights spreads to the traders by engaging liquidity providers to provide the best prices to fight for liquidity.

Innovative liquidity connector® is a solution for high trading costs. By narrowing the spreads between bid and offer, the trading cost of a trade reduces significantly. In addition, Tradeview Markets provides the best prices to its traders. By reducing the commission costs Tradeview Markets is able to provide a very competitive commission structure to the traders in the market.

Low Latency and VPS Solutions
Before we go further, let’s see what VPS and latency are and why they are important for traders. Virtual Private Server (VPS) is a dedicated piece of a server in a high-performance data center. It is designed and made to never fail, in order to allow automated traders some comfort that their Trading platform will always be live, accepting orders and executing trades in competitive time.
The VPS runs on a high-end server with multiple network feed. It has no single point of hardware failure so will be more reliable and secure for fixed income market.

Latency on the other hand, is the measure of time that takes for a “message” to go from VPS to broker/liquidity provider. The measurement is usually in milliseconds. Imagine that you are trying to place an order or a trade during a Non-Farm Payroll data. They are tens of thousands of traders attempting to place orders or trades at the same time. There is a finite amount of liquidity available to grab at the guaranteed price before slippage occurs. The lower the latency, the greater the likelihood that order gets filled first.

According to my findings the industry average of latency tests from forex VPS to trading servers are about 8.29 milliseconds. Tradeview provides ultra-fast execution because their latency tests from VPS to trading servers is 1.5 milliseconds. This provides our traders with the best execution measurement.
In conclusion, the future of trading in my opinion is in the hands of dealers who understand the traders’ mind-set, recognize their needs and unmet needs, know their problems, and try to provide solutions that fit those challenges. Since the trading market is becoming highly competitive, in order to gain a stronger market share we need new solution providers with trading backgrounds that can keep up with today’s technology and fast changes.

Tradeview Forex
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Tradeview Ltd. is not a portfolio manager or an investment advisor. This Market Report is for informational purposes only. Any statements made or opinions voiced in this Market Report do not constitute investment advice. The Tradeview Ltd. Market Report does not constitute a solicitation to buy or sell in the financial markets. Although the information contained in the Market Report comes from trusted sources, Tradeview Ltd. is not responsible for guaranteeing the accuracy, timeliness, completeness, or fitness of such sources. Tradeview Ltd. shall not be responsible for and disclaims all liability for any losses which may be suffered from access and use of the contents of the Tradeview Ltd. Market Report. Trading any financial instrument on margin, using leverage or otherwise involves considerable risk. Therefore, before deciding to participate in any style of trading, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. Consulting with your investment counselor, attorney, accountant or other professional upon whom you rely for guidance as to the appropriateness of an investment in any style of trading is recommended.

Tradeview Ltd.

Is licensed to carry on securities investment business and is regulated by the Cayman Islands Monetary Authority (CIMA) as a full securities broker-dealer. Tradeview conducts business pursuant to the Cayman Islands Securities Investment Business Law (SIBL) and its activities fall under the direct supervision of the Investments and Securities Division of CIMA.
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Is licensed and regulated by the Labuan Financial Services Authority (FSA) as a Money Broker, registration number LL15870 licensed to facilitate transactions in foreign exchange pursuant to Labuan Financial Services and Securities Act 2010, the Labuan Companies Act 1990 and the Labuan Business Activity Tax Act 1990.
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Is licensed as a Category 2 Investment Service Company and is regulated by the Malta Financial Services Authority (MFSA). The Malta Financial Services Authority (MFSA) is the single regulator for financial services in Malta. MFSA is a fully autonomous public institution and reports to Parliament on an annual basis. The MFSA is a member of the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA) and the International Organization of Securities Commissions (IOSCO) and is a signatory of the Multilateral Memorandum of Understanding with other European regulatory Institutions. Tradeview is authorized to provide financial services across multiple asset classes and is passported in the EU/EEA under MiFID II (EU Markets in Financial Instruments Directive).
Headquarters: 157 Archbishops Street, Valletta VLT Malta 1440.

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Is authorized to conduct business pursuant to and in compliance with the General Law of Companies (LGS) promulgated by the government of Peru. Tradeview Financial Markets S.A.C is registered with the National Superintendence of Public Registries (SUNARP), company number 13089531. Tradeview Financial Markets S.A.C provides financial services in selected OTC derivative markets in compliance with all applicable government regulations.
Headquarters: Los Mirtos 239 Urb. San Eugenio, Lince, Lima, Perú.