On January 20, Finalto, the award-winning global multi-asset
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 provider and prime brokerage, announced the appointment of Chris Cotterell as the managing director of Finalto Australia. Finalto Group sees the hiring as important as Chris will be tasked with expanding Finalto’s presence throughout Australia.
Before joining Finalto Australia, Chris worked at Finalto’s London HQ as risk manager. His role assisted in streamlining and updating Finalto London’s risk management processes, thus enabling the subsidiary company to offer top-notch world-class services and mitigate risks across all major areas of its business operations. Over the four years at Finalto London, Chris’s strategic directionand client focus has had a profound impact on the growth of the company.
Chris brings over 20 years financial experience to Finalto Australia. He has served several managerial positions in roles related to risk, sales, and operations business activities. He comes with deep specialist FX and CFD market knowledge as well as in-depth understanding of what clients need from technology and
liquidity providers
Liquidity Providers
A liquidity provider (LP) constitutes either individual and/or institution that functions as a market maker in a given asset class. Broadly speaking, liquidity providers will act as the both the buyer and seller of a particular asset, thus making a market. In the equities space, many stock exchanges rely on liquidity providers who make the commitment to provide liquidity in a given equity. These liquidity providers commit to providing liquidity in the hopes that they will be able to make a profit on the bid-ask spread.In doing so, these entities theoretically ensure greater price stability and also improve liquidity by making it easier for traders to buy and sell at any price level. Market liquidity providers also oversee an important service and take on a significant amount of risk.However, these are still able to profit from the spread or by positioning themselves on the basis of the valuable information available to them.Analyzing Liquidity Providers Relationship with BrokersIn addition, liquidity providers also delivering interbank market access to retail brokers. They are typically large multinational investment banks, or other financial institutions that can be non-bank entities. Each liquidity provider is streaming executable rates to the broker whose aggregator engine is selecting the best bid and ask and streams it to clients to deliver the best possible spread.The broker is the direct counterparty to all trades executed with the liquidity provider and typically only uses them to offload flows which it finds uneconomical to internalize. That said, some brokers are sending all of their flow to liquidity providers.Liquidity providers have a set of characteristics which are determining their suitability and reliability – such are order rejection rates, spreads, and latency. Brokers which aren’t monitoring the flow adequately are risking to deliver to their clients’ bad fills, which consequently result in customer complaints since the customer is consistently not getting the displayed or requested price.
A liquidity provider (LP) constitutes either individual and/or institution that functions as a market maker in a given asset class. Broadly speaking, liquidity providers will act as the both the buyer and seller of a particular asset, thus making a market. In the equities space, many stock exchanges rely on liquidity providers who make the commitment to provide liquidity in a given equity. These liquidity providers commit to providing liquidity in the hopes that they will be able to make a profit on the bid-ask spread.In doing so, these entities theoretically ensure greater price stability and also improve liquidity by making it easier for traders to buy and sell at any price level. Market liquidity providers also oversee an important service and take on a significant amount of risk.However, these are still able to profit from the spread or by positioning themselves on the basis of the valuable information available to them.Analyzing Liquidity Providers Relationship with BrokersIn addition, liquidity providers also delivering interbank market access to retail brokers. They are typically large multinational investment banks, or other financial institutions that can be non-bank entities. Each liquidity provider is streaming executable rates to the broker whose aggregator engine is selecting the best bid and ask and streams it to clients to deliver the best possible spread.The broker is the direct counterparty to all trades executed with the liquidity provider and typically only uses them to offload flows which it finds uneconomical to internalize. That said, some brokers are sending all of their flow to liquidity providers.Liquidity providers have a set of characteristics which are determining their suitability and reliability – such are order rejection rates, spreads, and latency. Brokers which aren’t monitoring the flow adequately are risking to deliver to their clients’ bad fills, which consequently result in customer complaints since the customer is consistently not getting the displayed or requested price.
Read this Term. Chris will therefore play a crucial role in servicing institutional customers, at a time when Finalto Group is expanding its product offerings across the APAC region.
Chris, talked about the development and said: “As an Aussie having moved to the UK nearly 20 years ago, I am excited to be heading back home to help grow the Finalto brand and our amazing product portfolio.”
Finalto Is Working to Connect with Customers
The move by Finalto Group comes at a time when the global B2B multi-asset liquidity and clearing broker is committed to expand its product offering and serve its customers in a more efficient manner. Early this month, the company added 32 leveraged equities belonging to some of the most leading companies listed in the Singapore Stock Exchange (SGX) to its already impressive list of offerings. In September last year, Finalto partnered with BidFX, an institutional FX technology solutions provider, in order to expand its FX and precious metal distribution. Finalto considered partnership with BidFX as important to bring it to wider financial markets. BidFX provides cutting-edge FX trading solutions for institutional firms such as corporations, hedge funds, and asset managers. Finalto, which provides an alternative institutional multi-asset liquidity and clearing solution to their customers, regarded expanding its distribution of FX and Precious Metals through BidFX as an important milestone for the company.
On January 20, Finalto, the award-winning global multi-asset
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 provider and prime brokerage, announced the appointment of Chris Cotterell as the managing director of Finalto Australia. Finalto Group sees the hiring as important as Chris will be tasked with expanding Finalto’s presence throughout Australia.
Before joining Finalto Australia, Chris worked at Finalto’s London HQ as risk manager. His role assisted in streamlining and updating Finalto London’s risk management processes, thus enabling the subsidiary company to offer top-notch world-class services and mitigate risks across all major areas of its business operations. Over the four years at Finalto London, Chris’s strategic directionand client focus has had a profound impact on the growth of the company.
Chris brings over 20 years financial experience to Finalto Australia. He has served several managerial positions in roles related to risk, sales, and operations business activities. He comes with deep specialist FX and CFD market knowledge as well as in-depth understanding of what clients need from technology and
liquidity providers
Liquidity Providers
A liquidity provider (LP) constitutes either individual and/or institution that functions as a market maker in a given asset class. Broadly speaking, liquidity providers will act as the both the buyer and seller of a particular asset, thus making a market. In the equities space, many stock exchanges rely on liquidity providers who make the commitment to provide liquidity in a given equity. These liquidity providers commit to providing liquidity in the hopes that they will be able to make a profit on the bid-ask spread.In doing so, these entities theoretically ensure greater price stability and also improve liquidity by making it easier for traders to buy and sell at any price level. Market liquidity providers also oversee an important service and take on a significant amount of risk.However, these are still able to profit from the spread or by positioning themselves on the basis of the valuable information available to them.Analyzing Liquidity Providers Relationship with BrokersIn addition, liquidity providers also delivering interbank market access to retail brokers. They are typically large multinational investment banks, or other financial institutions that can be non-bank entities. Each liquidity provider is streaming executable rates to the broker whose aggregator engine is selecting the best bid and ask and streams it to clients to deliver the best possible spread.The broker is the direct counterparty to all trades executed with the liquidity provider and typically only uses them to offload flows which it finds uneconomical to internalize. That said, some brokers are sending all of their flow to liquidity providers.Liquidity providers have a set of characteristics which are determining their suitability and reliability – such are order rejection rates, spreads, and latency. Brokers which aren’t monitoring the flow adequately are risking to deliver to their clients’ bad fills, which consequently result in customer complaints since the customer is consistently not getting the displayed or requested price.
A liquidity provider (LP) constitutes either individual and/or institution that functions as a market maker in a given asset class. Broadly speaking, liquidity providers will act as the both the buyer and seller of a particular asset, thus making a market. In the equities space, many stock exchanges rely on liquidity providers who make the commitment to provide liquidity in a given equity. These liquidity providers commit to providing liquidity in the hopes that they will be able to make a profit on the bid-ask spread.In doing so, these entities theoretically ensure greater price stability and also improve liquidity by making it easier for traders to buy and sell at any price level. Market liquidity providers also oversee an important service and take on a significant amount of risk.However, these are still able to profit from the spread or by positioning themselves on the basis of the valuable information available to them.Analyzing Liquidity Providers Relationship with BrokersIn addition, liquidity providers also delivering interbank market access to retail brokers. They are typically large multinational investment banks, or other financial institutions that can be non-bank entities. Each liquidity provider is streaming executable rates to the broker whose aggregator engine is selecting the best bid and ask and streams it to clients to deliver the best possible spread.The broker is the direct counterparty to all trades executed with the liquidity provider and typically only uses them to offload flows which it finds uneconomical to internalize. That said, some brokers are sending all of their flow to liquidity providers.Liquidity providers have a set of characteristics which are determining their suitability and reliability – such are order rejection rates, spreads, and latency. Brokers which aren’t monitoring the flow adequately are risking to deliver to their clients’ bad fills, which consequently result in customer complaints since the customer is consistently not getting the displayed or requested price.
Read this Term. Chris will therefore play a crucial role in servicing institutional customers, at a time when Finalto Group is expanding its product offerings across the APAC region.
Chris, talked about the development and said: “As an Aussie having moved to the UK nearly 20 years ago, I am excited to be heading back home to help grow the Finalto brand and our amazing product portfolio.”
Finalto Is Working to Connect with Customers
The move by Finalto Group comes at a time when the global B2B multi-asset liquidity and clearing broker is committed to expand its product offering and serve its customers in a more efficient manner. Early this month, the company added 32 leveraged equities belonging to some of the most leading companies listed in the Singapore Stock Exchange (SGX) to its already impressive list of offerings. In September last year, Finalto partnered with BidFX, an institutional FX technology solutions provider, in order to expand its FX and precious metal distribution. Finalto considered partnership with BidFX as important to bring it to wider financial markets. BidFX provides cutting-edge FX trading solutions for institutional firms such as corporations, hedge funds, and asset managers. Finalto, which provides an alternative institutional multi-asset liquidity and clearing solution to their customers, regarded expanding its distribution of FX and Precious Metals through BidFX as an important milestone for the company.
Source: https://www.financemagnates.com/institutional-forex/finalto-announces-appointment-of-chris-cotterell-as-managing-director/