TP ICAP Group announced on Thursday that it is going to launch an electronic Foreign Exchange trading platform in Singapore. The company is also receiving support from the Monetary Authority of Singapore (MAS) for the upcoming services.
The platform will be based on TP ICAP’s Fusion interface and will initially offer institutional cleints to trade in Asian 1 Month Non-Deliverable Forwards (NDF). It also has concrete plans for expansion by including FX Forwards and additional tenors in Asian NDFs.
“TP ICAP’s decision to locate a Fusion FX platform in Singapore is an important part of our strategy to enable our clients to trade electronically and access our deep, global liquidity
Liquidity
Liquidity is at the core of every broker’s offering. It is a basic characteristic of every financial asset – be it a currency, stock, bond, commodity or real estate. The more liquid an asset is, the easier it is to sell and buy on the open market. Foreign exchange is considered to be the most liquid asset class.Brokers can source liquidity from a single or multiple source, thereby delivering to their clients enough market depth for their orders to get filled. The main characteristic of liquidity is its depth, which will determine how quickly and how big of an order can be executed via the trading platform.Understanding LiquidityLiquidity can be internal or external depending on the size and the book of the broker. Companies which are large enough and have material client flows consistently are creating their own liquidity pools from the order flow of their clients, thereby internalizing flows and saving on costs to send customer orders to the interbank market. By doing that however they are exposing themselves to carry the risk on the trade.Liquidity providers can be prime brokers, prime of primes, other brokers or the broker’s book itself. Traditionally brokers are split between internalizing flows and offloading trades of their clients to different liquidity providers.Generally, retail brokers and their clients prefer more liquid assets which lead to better fill rates and less slippage. When there is lack of liquidity on a certain market, slippage can occur – the order is executed at a price which is the closest available to the one requested by the client.
Liquidity is at the core of every broker’s offering. It is a basic characteristic of every financial asset – be it a currency, stock, bond, commodity or real estate. The more liquid an asset is, the easier it is to sell and buy on the open market. Foreign exchange is considered to be the most liquid asset class.Brokers can source liquidity from a single or multiple source, thereby delivering to their clients enough market depth for their orders to get filled. The main characteristic of liquidity is its depth, which will determine how quickly and how big of an order can be executed via the trading platform.Understanding LiquidityLiquidity can be internal or external depending on the size and the book of the broker. Companies which are large enough and have material client flows consistently are creating their own liquidity pools from the order flow of their clients, thereby internalizing flows and saving on costs to send customer orders to the interbank market. By doing that however they are exposing themselves to carry the risk on the trade.Liquidity providers can be prime brokers, prime of primes, other brokers or the broker’s book itself. Traditionally brokers are split between internalizing flows and offloading trades of their clients to different liquidity providers.Generally, retail brokers and their clients prefer more liquid assets which lead to better fill rates and less slippage. When there is lack of liquidity on a certain market, slippage can occur – the order is executed at a price which is the closest available to the one requested by the client.
Read this Term pools,” said Nicolas Breteau, CEO of TP ICAP.
TP ICAP, which operates the largest dark pool
Dark Pool
Private exchanges that are not accessible by the investing public for trading securities are known as dark pools.Dark pools are named due to their lack of transparency and occasional predatory trading practices that are performed by high-frequency traders. These exchanges originally into existence towards the end of the 1980s as a way to better facilitate block trading performed by institutional investors. Why Use Dark Pools?Dark pools are used primarily by large-scale investors who do not seek to sway markets through enormous trading positions or incur adverse prices due to their large transactions. Of note, dark pools don’t require investors to disclose their trading intentions prior to trade execution.As such, there is no order book or ledger available to the public while performed trades are released after a delay in the ticker tape, also known as the system that reflects real-time exchange-listed data. More than 48 dark pools have been registered with the Securities and Exchange Commission (SEC) while dark pools can be divided into three classifications. Dark pools that derive their own price rates from order flow implement an element known as price discovery. This is seen characteristic of dark pools that are broker-dealer owned and electronic market makers. Electronic market makers, such as Getco, are independently operated dark pools who function as administrators for their own account. Examples of broker-dealer owned dark pools include Goldman Sachs’ Sigma X, Morgan Stanley’s MS Pool, and Citibank’s CitiMatch. Dark pools that are broker-dealer owned are structured to fulfill the needs of their clients and sometimes their own team of proprietary investors. An exchange-owned or agency broker dark pool serve as agents, not administrators, while prices stem from exchanges such as the National Best Bid and Offer (NBBO). An example of exchange-owned dark pools includes the NYSE Euronext while the Instinet Liquidnet is an example of an agency broker dark pool. Despite the notoriety that surrounds dark pools, dark pools serve an essential function and can significantly reduce market sways by large scale trades.
Private exchanges that are not accessible by the investing public for trading securities are known as dark pools.Dark pools are named due to their lack of transparency and occasional predatory trading practices that are performed by high-frequency traders. These exchanges originally into existence towards the end of the 1980s as a way to better facilitate block trading performed by institutional investors. Why Use Dark Pools?Dark pools are used primarily by large-scale investors who do not seek to sway markets through enormous trading positions or incur adverse prices due to their large transactions. Of note, dark pools don’t require investors to disclose their trading intentions prior to trade execution.As such, there is no order book or ledger available to the public while performed trades are released after a delay in the ticker tape, also known as the system that reflects real-time exchange-listed data. More than 48 dark pools have been registered with the Securities and Exchange Commission (SEC) while dark pools can be divided into three classifications. Dark pools that derive their own price rates from order flow implement an element known as price discovery. This is seen characteristic of dark pools that are broker-dealer owned and electronic market makers. Electronic market makers, such as Getco, are independently operated dark pools who function as administrators for their own account. Examples of broker-dealer owned dark pools include Goldman Sachs’ Sigma X, Morgan Stanley’s MS Pool, and Citibank’s CitiMatch. Dark pools that are broker-dealer owned are structured to fulfill the needs of their clients and sometimes their own team of proprietary investors. An exchange-owned or agency broker dark pool serve as agents, not administrators, while prices stem from exchanges such as the National Best Bid and Offer (NBBO). An example of exchange-owned dark pools includes the NYSE Euronext while the Instinet Liquidnet is an example of an agency broker dark pool. Despite the notoriety that surrounds dark pools, dark pools serve an essential function and can significantly reduce market sways by large scale trades.
Read this Term, is offering Fusion as a customizable electronic platform, offering clients access to global liquidity pools.
TP ICAP is also focused on the expansion into several areas, especially cryptocurrencies, and has onboarded several big names as liquidity providers. The company, however, recorded an 81 percent drop in its 2021 profits despite a marginal jump in its revenue.
The Next Trading Hub
The platform’s expansion into Singapore is strategic for both itself and the regulators of the city-state. MAS has already unveiled its plans earlier to make the country a major trading and corporate treasury hub.
“Singapore is the third-largest FX trading center globally and the largest in Asia, and we believe that it will continue to grow,” Breteau said.
Lim Cheng Khai, MAS’ Executive Director of Financial Markets Development Department, said: “Singapore is geographically well-positioned to offer low latency connections to regional markets, and TP ICAP’s multi-dealer Fusion FX platform will enable market participants from across the Asia-Pacific region to benefit from an improved trading experience.”
Meanwhile, many other institutional platforms are also moving towards Singapore. Integral, which is a major technology provider in the FX market, also made its IntegralFX services available in Singapore’s SG1 data center.
TP ICAP Group announced on Thursday that it is going to launch an electronic Foreign Exchange trading platform in Singapore. The company is also receiving support from the Monetary Authority of Singapore (MAS) for the upcoming services.
The platform will be based on TP ICAP’s Fusion interface and will initially offer institutional cleints to trade in Asian 1 Month Non-Deliverable Forwards (NDF). It also has concrete plans for expansion by including FX Forwards and additional tenors in Asian NDFs.
“TP ICAP’s decision to locate a Fusion FX platform in Singapore is an important part of our strategy to enable our clients to trade electronically and access our deep, global liquidity
Liquidity
Liquidity is at the core of every broker’s offering. It is a basic characteristic of every financial asset – be it a currency, stock, bond, commodity or real estate. The more liquid an asset is, the easier it is to sell and buy on the open market. Foreign exchange is considered to be the most liquid asset class.Brokers can source liquidity from a single or multiple source, thereby delivering to their clients enough market depth for their orders to get filled. The main characteristic of liquidity is its depth, which will determine how quickly and how big of an order can be executed via the trading platform.Understanding LiquidityLiquidity can be internal or external depending on the size and the book of the broker. Companies which are large enough and have material client flows consistently are creating their own liquidity pools from the order flow of their clients, thereby internalizing flows and saving on costs to send customer orders to the interbank market. By doing that however they are exposing themselves to carry the risk on the trade.Liquidity providers can be prime brokers, prime of primes, other brokers or the broker’s book itself. Traditionally brokers are split between internalizing flows and offloading trades of their clients to different liquidity providers.Generally, retail brokers and their clients prefer more liquid assets which lead to better fill rates and less slippage. When there is lack of liquidity on a certain market, slippage can occur – the order is executed at a price which is the closest available to the one requested by the client.
Liquidity is at the core of every broker’s offering. It is a basic characteristic of every financial asset – be it a currency, stock, bond, commodity or real estate. The more liquid an asset is, the easier it is to sell and buy on the open market. Foreign exchange is considered to be the most liquid asset class.Brokers can source liquidity from a single or multiple source, thereby delivering to their clients enough market depth for their orders to get filled. The main characteristic of liquidity is its depth, which will determine how quickly and how big of an order can be executed via the trading platform.Understanding LiquidityLiquidity can be internal or external depending on the size and the book of the broker. Companies which are large enough and have material client flows consistently are creating their own liquidity pools from the order flow of their clients, thereby internalizing flows and saving on costs to send customer orders to the interbank market. By doing that however they are exposing themselves to carry the risk on the trade.Liquidity providers can be prime brokers, prime of primes, other brokers or the broker’s book itself. Traditionally brokers are split between internalizing flows and offloading trades of their clients to different liquidity providers.Generally, retail brokers and their clients prefer more liquid assets which lead to better fill rates and less slippage. When there is lack of liquidity on a certain market, slippage can occur – the order is executed at a price which is the closest available to the one requested by the client.
Read this Term pools,” said Nicolas Breteau, CEO of TP ICAP.
TP ICAP, which operates the largest dark pool
Dark Pool
Private exchanges that are not accessible by the investing public for trading securities are known as dark pools.Dark pools are named due to their lack of transparency and occasional predatory trading practices that are performed by high-frequency traders. These exchanges originally into existence towards the end of the 1980s as a way to better facilitate block trading performed by institutional investors. Why Use Dark Pools?Dark pools are used primarily by large-scale investors who do not seek to sway markets through enormous trading positions or incur adverse prices due to their large transactions. Of note, dark pools don’t require investors to disclose their trading intentions prior to trade execution.As such, there is no order book or ledger available to the public while performed trades are released after a delay in the ticker tape, also known as the system that reflects real-time exchange-listed data. More than 48 dark pools have been registered with the Securities and Exchange Commission (SEC) while dark pools can be divided into three classifications. Dark pools that derive their own price rates from order flow implement an element known as price discovery. This is seen characteristic of dark pools that are broker-dealer owned and electronic market makers. Electronic market makers, such as Getco, are independently operated dark pools who function as administrators for their own account. Examples of broker-dealer owned dark pools include Goldman Sachs’ Sigma X, Morgan Stanley’s MS Pool, and Citibank’s CitiMatch. Dark pools that are broker-dealer owned are structured to fulfill the needs of their clients and sometimes their own team of proprietary investors. An exchange-owned or agency broker dark pool serve as agents, not administrators, while prices stem from exchanges such as the National Best Bid and Offer (NBBO). An example of exchange-owned dark pools includes the NYSE Euronext while the Instinet Liquidnet is an example of an agency broker dark pool. Despite the notoriety that surrounds dark pools, dark pools serve an essential function and can significantly reduce market sways by large scale trades.
Private exchanges that are not accessible by the investing public for trading securities are known as dark pools.Dark pools are named due to their lack of transparency and occasional predatory trading practices that are performed by high-frequency traders. These exchanges originally into existence towards the end of the 1980s as a way to better facilitate block trading performed by institutional investors. Why Use Dark Pools?Dark pools are used primarily by large-scale investors who do not seek to sway markets through enormous trading positions or incur adverse prices due to their large transactions. Of note, dark pools don’t require investors to disclose their trading intentions prior to trade execution.As such, there is no order book or ledger available to the public while performed trades are released after a delay in the ticker tape, also known as the system that reflects real-time exchange-listed data. More than 48 dark pools have been registered with the Securities and Exchange Commission (SEC) while dark pools can be divided into three classifications. Dark pools that derive their own price rates from order flow implement an element known as price discovery. This is seen characteristic of dark pools that are broker-dealer owned and electronic market makers. Electronic market makers, such as Getco, are independently operated dark pools who function as administrators for their own account. Examples of broker-dealer owned dark pools include Goldman Sachs’ Sigma X, Morgan Stanley’s MS Pool, and Citibank’s CitiMatch. Dark pools that are broker-dealer owned are structured to fulfill the needs of their clients and sometimes their own team of proprietary investors. An exchange-owned or agency broker dark pool serve as agents, not administrators, while prices stem from exchanges such as the National Best Bid and Offer (NBBO). An example of exchange-owned dark pools includes the NYSE Euronext while the Instinet Liquidnet is an example of an agency broker dark pool. Despite the notoriety that surrounds dark pools, dark pools serve an essential function and can significantly reduce market sways by large scale trades.
Read this Term, is offering Fusion as a customizable electronic platform, offering clients access to global liquidity pools.
TP ICAP is also focused on the expansion into several areas, especially cryptocurrencies, and has onboarded several big names as liquidity providers. The company, however, recorded an 81 percent drop in its 2021 profits despite a marginal jump in its revenue.
The Next Trading Hub
The platform’s expansion into Singapore is strategic for both itself and the regulators of the city-state. MAS has already unveiled its plans earlier to make the country a major trading and corporate treasury hub.
“Singapore is the third-largest FX trading center globally and the largest in Asia, and we believe that it will continue to grow,” Breteau said.
Lim Cheng Khai, MAS’ Executive Director of Financial Markets Development Department, said: “Singapore is geographically well-positioned to offer low latency connections to regional markets, and TP ICAP’s multi-dealer Fusion FX platform will enable market participants from across the Asia-Pacific region to benefit from an improved trading experience.”
Meanwhile, many other institutional platforms are also moving towards Singapore. Integral, which is a major technology provider in the FX market, also made its IntegralFX services available in Singapore’s SG1 data center.
Source: https://www.financemagnates.com/institutional-forex/tp-icap-to-launch-electronic-fx-trading-platform-in-singapore/