Evaluating FX Venues by Execution Needs and Market Access
Summary
The document discusses how to compare foreign exchange trading venues and related technology vendors when public materials do not disclose concrete details such as latency, costs, liquidity, or protocol capabilities. The replies first clarify that electronic venues and execution software serve different roles, so they should be assessed in separate categories. Examples distinguish venues from systems that manage market data and order execution.
Rather than offering measured venue specifications, the answers suggest starting with the intended use: execution versus delivery, hedging versus speculation, manual versus automated trading, counterparty relationships, and technology preferences. These requirements can guide a comparison of electronic communication networks and their strengths. The post also raises protocol access as a potentially important venue feature, but does not establish specific capabilities for any named provider or offer a reliable method for obtaining private performance data. The guidance is therefore a scoping framework, not a completed vendor ranking.
Key ideas
- Separate trading venues from software vendors because they provide different functions.
- Define the trading purpose and workflow before selecting comparison criteria.
- Relevant needs can include execution, delivery, automation, counterparty access, and technology fit.
- The document gives no verified latency, cost, liquidity, or protocol measurements for the listed firms.
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Full text
# How to obtain specific information on FX trading systems? # How to obtain specific information on FX trading systems? I'm trying to compare trading venues using a quantitative product selection matrix (and eventually software vendors using a different matrix specifically for vendors), and I was wondering if anyone could give me some input on what features are most important when it comes to Foreign Exchange trading venues. I really need to learn how to obtain the concrete numbers on the important features such as latency numbers, fixed / variable costs, or liquidity as the company websites do not provide this information. This information is crucial to my analysis and I'm currently at a loss on how to obtain it. This post is an example of the sort of information I'm looking for. "Your aggregator should be coding not just to the FIX feeds but the specialized protocols. FIX just gives the bare minimum. For example, Hotspot's FIX certainly works but is throttled and doesn't have the full market data detail. You need their Itch. For Currenex, you need their Itch and Ouch." How would I go about finding out that Hotspot's FIX doesn't provide market data detail? Only by using the platform for trading? Certain platforms requiring additional features while others really do not is exactly the kind of information I'm after. Here is the list of companies I'm trying to obtain information on. I realize I've listed some software vendors, but I'm currently focused on the trading venues. - FXall - Currenex - Integral - Market Factory - HotSpot FX - First Derivatives - PLC SmartTrade - Technologies - FlexTrade - Apama - Portware Thank you very much for any advice anyone has to offer. Also, I have only been doing research on FX trading venues / software vendors for a month or two so I apologize in advance if I am focusing on the wrong ideas. ## Answer by madilyn (score 2) https://quant.stackexchange.com/a/10447 I'm guessing that your question will be closed soon, but I wish to help you. Your question doesn't make complete sense. Are you looking for a "trading platform" as in an electronic trading venue, or a software built around handling market data and order execution? FXAll, Currenex, Hotspot and Integral are trading venues, while Apama, FlexTrade and Portware are software vendors that focus on market data management and order execution. ## Answer by rupweb (score 1) https://quant.stackexchange.com/a/10459 different features? a euro is a euro no matter where it's traded. You have to identify what you want to do. Why are you trading? Do you want execution only, or delivery? Are you covering cashflows or taking speculative positions? Are you going to trade manually or with automation? How many provider relationships do you want to refer to? Do you want to trade with banks, or peer to peer? What technology do you want to use? Then put the various ECN and measure their strengths and weaknesses.
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