Devexperts Educates: The Ins and Outs of Forex Liquidity Aggregation

The second installment in my series of educational materials tackles the subtleties of forex liquidity aggregation. As we continue diving deeper into the business of forex and CFD brokers, we will uncover what issues they may come across with liquidity providers and how a liquidity aggregator can solve them.

A liquidity provider is a crucial point of failure for a broker in their execution management, so working with multiple LPs is advisable. But processing quotes from multiple LPs, and especially execution against a converged quote stream, calls for a liquidity aggregator.

At Devexperts, we have been providing trading software to brokers since 2002. We’ve summarized our 20-year experience in this short guide: The Ins and Outs of Forex Liquidity Aggregation where you’ll find solutions to the various issues concerning work with liquidity providers.

This book will benefit brokers regardless of their risk management strategy, though it is most valuable to those utilizing hedging.

This book is here to help brokerage employees understand how liquidity aggregation works. They could be from an IT department or a dealing desk—either way, they will understand how this piece of software consolidates market data from several LPs into a single stream, routes trades to the LP with the best quote, and splits trades with multiple LPs simultaneously for large transactions. This will help your employees sort out requests of the most demanding traders faster in cases where they are unhappy with the execution time or resulting price and ask for a detailed explanation of what happened.

The Ins and Outs of Forex Liquidity Aggregation could also be helpful for risk management accountants working in a back office. They will better understand the challenges of the multi-LP environment and be able to calculate the broker’s risks if a broker uses a B-book execution model.

Aside from brokers, this book can teach a lot to the employees of IT vendors who develop trading solutions. Developers, QA engineers, analysts, and other employees must thoroughly understand how such software operates to deliver the best results without a hitch.

Marketing experts working for brokers or software vendors can also use The Ins and Outs of Forex Liquidity Aggregation. It is tough to spread the word about your technology without understanding the needs of your target audience.

The book is accessible for free on Devexperts.com. Download it here and send it to your employees now.