The most significant change in the FX market in recent times has been the increased diversification of sources of liquidity. In the past it was sufficient for currency investors to have access to a very small number of liquidity providers, usually banks, in order to meet all of their requirements. Liquidity is now spread more widely amongst new trading venues and new liquidity sources, such as non-bank liquidity providers. It has also become shallower due to regulatory, credit issues and competition.
There is a real need in the market for cuLondon, Paris & Aix en Provence, April 9, 2014 – smartTrade Technologies, the leader in cross-asset liquidity management software and solutions, announces today that CMC Markets, one of the leading providers of FX, CFD trading and spread betting has selected LiquidityFX™, smartTrade’s FX trading solution for FX and precious metals. CMC Markets selected smartTrade for its unique no brokerage fee model and cloud based service which takes advantage of being globally co-located with Liquidity Providers.
Thanks to the next generation aggregation and intelligent smart order routing capability of LiquidityFX, CMC Markets benefits from true direct market access to selected Liquidity Providers and ECNs, without the spread distorting impact of liquidity fees (smartTrade does not charge Liquidity Providers). CMC Markets’ traders can trade in a fully disclosed bilateral manner through the LiquidityFX API or UI, with a range of passive or aggressive order types. smartTrade’s solutions are proven to both enhance hit ratios and reduce execution latency, thus enhancing efficiency and revenue of CMC Markets’ trading activity.
Hosted in Equinix’s data centres in New York, Tokyo and London, LiquidityFX drastically reduces time-to-market to roll out a sophisticated FX trading system. smartTrade’s cloud based offering enables banks and brokers to control IT expenditure, thanks to both the flat fee structure and the outsourcing of maintenance to a dedicated smartTrade’s 24/7 global support team.
Greg Niebank, Group Head of Product at CMC Markets says, “We have seen tighter spreads and improved fill ratios thanks to the no brokerage fee model offered by smartTrade and the benefit of being cross-connected to our liquidity providers. Additionally, the smartTrade solution has significantly simplified our infrastructure, allowing us to respond to changes in the market environment much more quickly”.
David Vincent, Chief Executive Officer of smartTrade Technologies says: “smartTrade is a pioneer in transparent technology with volume agnostic fees and a wide range of innovative functionality to offer both traders and their clients alike. We are very pleased to support CMC Markets in growing their FX and precious metals trading activity by using our best of breed technology. Our easy-to-use trading front-ends and APIs allowed them to be up and running in weeks , giving CMC Markets an important step ahead in the FX market. We look forward to accompanying CMC Markets in its growth.”
About smartTrade and LiquidityFX
Founded in 1999, smartTrade provides sophisticated Liquidity Management Systems, enabling banks to develop multi-asset dealing platforms that aggregate liquidity from dozens of sources to create a single order book, distribute customised pricing to clients, receive and manage client order flow, internalise liquidity and/or route it to external venues regardless of messaging protocols. The system handles multiple asset classes and is in production globally supporting foreign exchange, fixed income, equities, rates, and many other instrument types.
smartTrade’s proven liquidity management platform powers LiquidityFX, the FX trading system for spot FX, swaps, NDF and precious metals. With no volume-based fees, the platform gathers the functions of aggregation, smart order routing, pricing and distribution, order and risk management. smartTrade offers one of the deepest connectivity stacks with more than 40 providers composed of both banks and ECNs.
For more information, visit smart-trade.net .
About CMC Markets
CMC Markets is a leading global provider of financial spread betting, CFD and FX trading. Since Peter Cruddas founded CMC Markets in 1989, the company now has offices in London, Paris, Milan, Madrid, Frankfurt, Oslo, Stockholm, Sydney, Toronto, Auckland and Singapore. CMC Markets represents clients in almost 100 countries. CMC Markets UK Plc and CMC Spreadbet Plc (collectively known as CMC Markets) are authorized and regulated in the UK by the Financial Conduct Authority. For further information on CMC Markets, please visit www.cmcmarkets.co.uk.rrency investors to optimise their access to liquidity as a consequence. This can be achieved by leveraging technology.
Successful trading, with a low latency execution speed, cannot be achieved manually. This is why currency investors need to adopt advanced algorithmic smart order routing. Technology providers, such as smartTrade, provide out-of-the-box strategies including sophisticated sets of execution rules to decide which trading venue(s) or liquidity provider(s) is/are optimal for trade execution.
Advanced smart order routing, is not enough as investors also need to incorporate big data analysis. By using big data analysis, currency investors can achieve a 360 degree view across their liquidity and the way it is provided to them.
This combination of smart order routing and big data analytics gives investors an intelligently automated method to find the liquidity provider that is best adapted for them based on certain parameters, such as market impact, slippage, and rejection rate.