Thomson Reuters Confirms Final FXall Operational Procedures

Thomson Reuters today published operational procedures for trading protocols on its FXall platform, following consultation with the industry.

The procedures announced today include the codified Provisory 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 protocol announced earlier this year. The protocol is meant to enable liquidity consumers and providers to make informed trading decisions based on transparent and measurable criteria. A similar protocol was introduced at the same time by Hotspot, the institutional FX market owned and operated by BATS Global Markets.

“The new rules aim to encourage higher standards of behaviour by offering venue rules which are consistently and transparently managed to the highest standard,” said Phil Weisberg, global head of FX, Thomson Reuters. “After a client consultation period, we have finalized a robust set of standards for both our RFQ and Streaming Price trading protocols, where participants trade on a disclosed, relationship basis, as well as our Order Book platform, where participants trade anonymously using either firm or Provisory Liquidity.”

The final procedures announced today include changes based on market feedback including tighter Offer To Deal response times. A multi-dealer platform, the FXall platform incorporates liquidity from Thomson Reuters' anonymous ECN, as well as allowing customers to integrate relationship-based pricing.

Thomson Reuters explains that the behavioural and platform controls associated with the Provisory Liquidity protocol empower participants to confidently choose liquidity sources that best suit their needs while mitigating the impact of physical distance on execution quality. They also claim to entitle qualified Market Makers Market Makers Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a v Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a v Read this Term to manage credit and operational risk when making prices and enable intermediaries to offer liquidity to their customers on a riskless-principal basis, thereby enhancing transparency of execution.