Thomson Reuters Brings Market Data Frequency Refresh Rate to 100ms

Thomson Reuters has updated its matching engine to decrease the rates at which customers of the firm’s matching venue will be able to get new quotes. In a world where high-frequency trading has been dominating the markets, Thomson Reuters increases the engine’s market data frequency for a number of currency pairs.

As a result, the company expects that its customers will make better use of the service of one of the biggest electronic communications networks (ECNs) for trading foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term. The combined volume of FXall and Thomson Reuters Matching has reached $353 billion last month as the first of the typically subdued summer trading months is behind us.

According to the company’s statement, “Increased frequency will enhance price discovery for clients in key currencies, and increase precision in US dollar-euro trading.”

The process of decreasing the time between data updates will be conducted gradually, starting from the major pairs and includes the vast majority of U.S. dollar crosses.

The new refresh rate will be 100 milliseconds, which will drive a more efficient market with better price discovery rates. The changes will also affect the precision in trading the EUR/USD, which will benefit from new half-pip offers which will increase granularity.

The changes will also affect the Minimum Quote Life (MQL) for the affected pairs, which are USD/CAD, AUD/USD, NZD/USD, USD/CNY, GBP/USD, USD/JPY, USD/MXN and the AUD/NZD pair.

Commenting on the announcement the Global Head of foreign exchange at Thomson Reuters, Phil Weisberg said, “Following our recent launch of iceberg orders on Matching, the market data frequency changes are the latest in a series of innovations to improve 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 for market participants across our client base.”

Earlier this week, Thomson Reuters added Iceberg order functionality to its Matching venue, enabling the firm’s clients to mask the full size of any limit order they place on the platform by dividing it into smaller lots. Iceberg orders for FX have been pioneered by LavaFX, but have since been adopted by almost all ECNs for trading foreign exchange.