FXCM Pro Upgrades FIX Messaging System, Cuts Latency Materially

FXCM’s (NYSE:FXCM) institutional business unit FXCMPRO has sent out a note to clients elaborating on a new FIX messaging system that has been deployed by the company. According to the announcement the latency times for some users have been receded by up to 88 per cent, a figure that is quite significant.

The release is named External Messaging Flow (or EMF), and is rolling out to all FIX clients of FXCM Pro, with the brokerage community being one of the biggest beneficiaries from the new service.
 Tech providers oneZero and ThinkLiquidity were amongst the first companies in the industry to upgrade their systems to meet the improved speeds.

The upgrade is likely to result in lower trade rejections

Commenting to Finance Magnates on the matter, the CEO of oneZero, Andrew Ralich, said: “We have been working closely with FXCM for some time now to identify ways to improve execution performance for our numerous mutual clients.”

“The work done over the past few months between our technology teams has yielded excellent results and allows brokers to further take advantage of the speed of oneZero technology and the quality Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term and clearing capabilities offered by FXCM,” he elaborated.

The upgrade is likely to result in lower trade rejections due to lower probability for the clients of the brokerage to miss the price that has been displayed on their feed.

latency times for some clients have been receded by up to 88 per cent

Elaborating on the upgraded FIX messaging system, the CEO of ThinkLiquidity, Jeff Wilkins, told Finance Magnates: “FXCM has been a highly valued liquidity partner for a number of years. I’m proud of the results we are seeing as it directly impacts our mutual clients in a very positive way.”

“The changes made have been the result of a great deal of work and collaboration and FXCM has knocked this one out of the park. At ThinkLiquidity, our mission is to deliver industry leading bridging connectivity and Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term technology, and we are pleased to be on the forefront of this exciting enhancement.”

Another perk for clients of FXCM Pro is linked to the relationship between latency times and the way clients process trades. The longer a client waits for a response from the liquidity provider, the less probability there is that it will have to reroute a trade to another liquidity provider in order to get a complete and 'good' fill of the order.

In recent months, FXCM has been continuing its work to enhance its product line at a time critical for the company which is yet to fully repay its loan to Leucadia National. The firm also holds a 33 per cent stake in Fastmatch, an Electronic Communications Network (ECN) for foreign exchange trading that has been in recent months actively growing its market share.