Liquidity Solution for Digital Asset Trading Platforms

Discuss possible steps and strategies of risk management for your platform or business with our specialists. In 2010 Soft-FX started to develop a new product within the framework of the emerging need of one of the largest customers at that time. It was found there were opportunities to develop the technical capabilities of the most popular retail FX terminal (MetaTrader 4), to expand the opportunities of the platform where customers manage their trading.

You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Stay ahead of your competitors by being the first to learn about
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offers by subscribing to the Brokeree Newsletter. SmartTrade was lauded for its unique value proposition of being the only FX aggregator developed in Asia, as well as for its focus on technology that offers optimum performance in terms of system capacity and latency. Or keep small volumes in B-book until the set limit is reached; once the limit is reached, the whole volume is sent to the LP. Our team can take care of all the functions that a classic dealing desk implies — from setting up to communicating with providers and resolving customer issues. Heidingsfeld realised local banks in those countries had an appetite for risk; something their large, global counterparts lacked.

As a result of modern technology, many areas of human activity, including trading on the market, have become simpler. The aggregation process is now conducted automatically and rapidly by software, which is responsible for creating liquidity. Essentially, a liquidity aggregator is software that assists brokers in obtaining the best bids from a variety of liquidity providers at the lowest possible prices due to liquidity pools.

You should consult a qualified financial advisor prior to making any actual investment or trading decisions. Any action you take upon the information on this website is strictly at your own risk and we will not be liable for any losses and damages in connection with the use of our website content. Our liquidity solution includes services that will help your ease up as much time and resources as possible. We are here to make your life easier, so you can put more resources on places where it’s needed the most. This is a sequence of filters that process raw quotes from different sources into aggregated Level 2 used for orders allocation, execution, and trading system feeding, thus shaping a customized market depth. We introduce people to the world of trading currencies, both fiat and crypto, through our non-drowsy educational content and tools.

The new Refinitiv FX Aggregator is fully hosted and represents one of the most uncomplicated and cost-efficient ways for firms to enable high quality FX trading. Installation can be performed by our support team to ensure smooth and trouble-free integration of the service. Dashboards
This tool allows you to have quick access and an overview of the key performance indicators of your business. “I think we have a culture in our company that looks to be innovative. There are other companies we compete with and we are not the largest company in our space. We can’t compete with the largest companies in the space,” Heidingsfeld says.

Operating since 1997, Libertex is an international broker with more than 20 years of financial market and online trading experience. The platform is mainly engaged in Forex trading, energy, metals, and futures contracts, with retail customers, people without special experience, and professional traders as typical clients. The global FX market is highly fragmented, with numerous different liquidity pools. Managing multiple connections to different FX liquidity pools is not only inefficient from the point of view of cost and complexity, but also gives traders a limited view of prices and of market depth. TraderTools offers one-to-one pricing, which enables liquidity providers to quote for the business they want to win, leading to fill ratios exceeding 95%. Moreover, the firm has formed relationships with the alternative liquidity providers filling the gaps left by the top banks, adding to the success of its business.

liquidity aggregation system provider

But while we’re seeing new users and capital enter the space, the landscape is still plagued by fragmentation. There are tens of thousands of tokens spread across hundreds of exchanges with different interfaces, fees, and processes – understandably daunting for newcomers. Savings can be made by clients who pay a single screen fee, as opposed to fees paid to multiple venues. In addition, efficiency is improved and screen real estate maximised with Refinitiv FX Aggregator displaying liquidity on a single screen. With plans to extend the offering to NDFs later in 2021, Refinitiv will further build on the quality and depth of available liquidity. ECN technology adds to the protection of a trader against manipulations and guarantees brokers’ noninterference.

Aggregators usually provide two main functions; they allow FX traders to compare price from different liquidity venues such as banks-global market makers or ECNs like Currenex, FXall or Hotspot FX and to have a consolidated view of the market. They allow traders to trade with many participants using a single API or a single trading terminal. A foreign exchange aggregator or FX Aggregator is a class of systems used in Forex trading to aggregate the liquidity from several liquidity providers. It can be compared to thousands of smaller streams forming significant liquidity flows.

liquidity aggregation system provider

The liquidity aggregator allows to fine-tune liquidity aggregation and execution conditions in an uninterrupted mode. Articles and financial market analysis on this website are prepared or accomplished by an author in his personal capacity. The views and opinions expressed in postings on this website belong solely to the author and may not reflect those of the company’s management or the official position of the company.

Market prices move until buying volume exceeds selling volume in an effort to find equilibrium. Lack of liquidity manifests on the chart as weak volatility or a number of non-overlapping gaps, for instance, if the interest is not paid (the seller is unable to find forex liquidity aggregation a buyer). Slippage, spread widening, and transactions at loss-making prices are just a few issues that this market faces. Because of this, liquidity providers play a crucial part in the process of trading on all financial markets, not only the Forex market.

There are several approaches to aggregation which can be both beneficial and detrimental. Enables execution via APIs by an external liquidity provider, or another aggregator. The component includes a multi-level protection system that prevents unexpected behavior of any connected LP (liquidity provider) or a trading platform server. With this feature, you can create customizable reports required for risk management optimization and interaction with liquidity providers. With TickTrader Liquidity Aggregator, you have FX and digital asset liquidity aggregator rolled into one, and offer Forex, Metals, CFD, and digital asset trading.

  • Link TickTrader Liquidity Aggregator with your platform and utilize 40 ready-to-go connections to major digital asset, FX, and stocks liquidity providers.
  • It’s true in a certain sense, since issuing of cryptocurrency is a predetermined procedure.
  • Institutional clients are the recipients and providers of liquidity at the same time.
  • Refinitiv FX Aggregator delivers a service which would be prohibitively expensive for many banks to build and maintain themselves.
  • Only then a true decentralization and independent trading processes will become possible.

Through liquidity aggregation, businesses can benefit from competitive pricing as providers compete to offer the best bid/ask spreads. This translates into better execution prices for trades, reducing trading costs and boosting overall profitability. By aggregating liquidity from multiple providers, businesses can access a larger pool of liquidity, ensuring improved depth and volume in the order book. This leads to tighter spreads, reduced slippage, and increased execution quality, thereby maximizing profitability. Now that you know what liquidity providers are and how they generate liquidity in different financial markets, it’s time to find out what strengths they have.

Any trades dealt using Refinitiv FX Aggregator automatically route to Refinitiv’s Trade Notification system. Straight Through Processing (STP) is supported for FX Matching, FXall or third-party venues. Refinitiv FX Aggregator is part of a suite of Refinitiv products designed to offer end-to-end workflow efficiency.


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