Siege Launches Anonymous Spot FX Matching Platform NetFix

London-headquartered Siege, the operator of dark pools for foreign exchange (forex), announced on Monday the launch of NetFix, the company’s new service for providing anonymous spot FX matching.

As described by the company itself, the new service provides an anonymous mechanism to match offsetting fixing orders in advance of the publication of an FX benchmark. In addition, it is providing a fully automated session matching.

The anonymity of the participants is ensured as NetFix is connected to a prime broker bank, which is acting as a central counterparty for each matched trade. The company did not name its prime broker Prime Broker Prime brokers are the designation given to individuals handling a package of services offered by investment banks, wealth management firms, and securities dealers to hedge funds which need the ability to borrow securities and cash in order to be able to invest on a netted basis and achieve an absolute return.There are two types of prime brokers - bank and non-bank corporations. Traditionally major global investment banks have been the predominant players in the space, however recent years have p Prime brokers are the designation given to individuals handling a package of services offered by investment banks, wealth management firms, and securities dealers to hedge funds which need the ability to borrow securities and cash in order to be able to invest on a netted basis and achieve an absolute return.There are two types of prime brokers - bank and non-bank corporations. Traditionally major global investment banks have been the predominant players in the space, however recent years have p Read this Term banking partner but highlighted that it is a 'top tier' industry name.

Siege is further claiming that the NetFix clients, which are banks and other institutions, can receive early access to 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 benefit from zero-information leakage and reduced trading congestion within Fix calculation windows.

“NetFix™ delivers innovation in Spot FX Fixing, allowing all participants to place orders on an anonymous basis, using different matching rounds before the publication of a Fix,” said Claude Goulet, the CEO of Siege.

“Driven by the needs of our Working Group of banks and buy-side firms, we have launched a service which improves fixing workflows for all parties, cuts transaction costs and delivers high rates of automation using our robust and secure core matching engine and low latency messaging infrastructure.”

Tried and Tested

The service was launched after Siege executed early spot trades among a group of early participants in July using the WMR 4pm Fix.

The official press release highlighted that NetFix is supporting all currency pairs. Also, the fixing rate on the platform is unknown until the publication of the FIX, but the filled orders are binding.

“Our first service, Siege MidPool is already connected to more than 50 buy- and sell-side firms, and most of the major FX trading platforms, so we expect these participants to onboard to NetFix quickly,” Goulet added.