ParFX
ParFX is a wholesale electronic trading platform launched in April 2013 to offer spot foreign exchange (FX) trading.[1][2]
It was created after a group of the world’s largest banks trading FX approached interdealer broker Compagnie Financiere Tradition (Tradition). These banks became frustrated by the deteriorating trading environment on other public spot FX trading venues, and in particular, the negative consequences caused by disruptive high-frequency trading.[3][4][5]
Central to the ParFX model is the randomisation logic, which applies a randomised pause to all order elements, amendments and cancellations. This ensures participants cannot gain an advantage purely through the speed of their own technology.[6] It also distributes free market data in parallel to all participants.[7]
ParFXPrime[edit]
ParFXPrime launched in 2014, and enables non-bank financial institutions to trade on ParFX via a prime broker. Citi and Deutsche Bank became the first prime banks to offer trading services to their clients. Virtu and XTX (formerly GSA Capital) were the first non-bank financial institutions to trade on ParFX.[8]
ParFX offers full transparency post-trade, with the executing broker, prime bank and prime client required to give up their names post-trade.[9]
Adherence to the FX Global Code[edit]
ParFX was one of the first trading platforms to commit to the FX Global Code, a set of guidelines and principles developed by a group of central banks and market participants to promote the integrity and effective functioning of the wholesale foreign exchange market.[10]
References[edit]
- ↑ "Exclusive: EBS take new step to rein in high-frequency traders".
- ↑ "How to combat bad trading behaviour in the FX market".
- ↑ "High-Frequency Solution Starts in Foreign Exchange: Currencies".
- ↑ "Report: High-Frequency Fight Starts in Foreign Exchange".
- ↑ "ParFX is not for sale".
- ↑ "ParFX eyes further growth as it nears third yea".
- ↑ "FX: THE PHANTOM LIQUIDITY MENACE".
- ↑ "ParFX trials high-speed market makers on platform".
- ↑ "ParFX launches prime brokerage service".
- ↑ "Forex industry executives comment on new FX Global Code of Conduct".
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