Advanced Markets Group has partnered with Fintech firm Tradefora, which provides trading cost and execution analytics for Forex, CFDs, and Cryptocurrencies . The multi-regulated Liquidity and PoP service provider explains that as new regulation heightened conduct standards, investors are now paying closer attention to their execution performance.
Advanced Markets operates a 100 percent STP/agency model based on its FCA and AFSL licenses. The company’s STP platform enables FX market participants to trade on prices streamed by more than ten FX banks in an anonymous market structure.
Tradefora was founded in 2016 to cater to transparency requirements in OTC and cryptocurrency markets using trading cost and execution analytics. The transaction analysis system is based on the patented technology that compares big amounts of data received from over 80 brokerage companies in real-time with millisecond accuracy, Tradefora claims.
Developed to offer greater transparency, Advanced Markets’ sales head Natallia Hunik says the integration of Tradefora's RTS27 reporting facility helps their clients meet the best execution requirements while tapping into its interbank liquidity feed. The solution aggregates top LPs to comprise an institutional liquidity pricing index that pulls in current trade and displays it in a dedicated dashboard on the client-server.
Tradefora turns eye to institutional space
“This partnership will enable us to further enhance our benchmark pricing tools across all the supported instruments with institutional level refresh rate frequency and full market depth analytics,” said Pavel Khizhnyak, co-founder and CEO of Tradefora.
Khizhnyak further explains that Tradefora ventures into the institutional space after having been focused on retail traders over the last three years. Its dedicated retail product, dubbed ‘Tradefora Composite Index or TCI,’ aggerates more than 100 retail broker price feeds to produce a peer-to-peer benchmark pricing index.
“Every trader in Tradefora has full access to this benchmark index and can independently verify the trade execution for free in near real-time. Having a more robust institutional level reference price index will provide us with an ability to check not only the Top of the Book prices but also to verify the VWAP execution quality across the entire market depth with millisecond precision,” he added.
The new approach could also be seen as a response to increasing transparency requirements which define the conduct of all market participants, including the need for buy-siders to prove best execution.
Best execution is also an important part of the Markets in Financial Instruments Directive II (MiFID II). Most of the debate in relation to best execution under MiFID II has focused on the requirements for firms to publish data on execution quality and to revise their relevant policies.
