Enables enhanced liquidity (and lower spreads) for non-FX products.
LeapRate has learned that leading MetaTrader software provider Gold-i is now introducing a new version of its MT4 / MT5 bridge, which will turn MT from a (mainly) FX trading tool into a multi-asset platform.
What exactly is new? Today, most MT4 / MT5 brokers which offer non-FX products on the platform (e.g. gold, oil, CFDs on shares and indices, futures) are "b-booking" their client trades (that is, taking them onto their own books), and then look for ways to efficiently hedge their accumulated positions, if required. Unlike FX, it has been difficult for retail Forex brokers to efficiently tap into a large liquid market for non-FX products, which would in turn allow them to more efficiently hedge their positions or even offer true straight-thru-processing of non-FX trades. Gold-i's updated Gate Bridge solves that problem, which will now connect brokers directly to large liquidity pools such as ICE futures markets. This, in turn, should result in much lower spreads for trading clients, as they too will be effectively connected directly to more liquid markets for these non-FX products.
Apparently the launch of this product took a lot of time and effort. Forex-only bridges are simpler, as Forex is a simpler product than futures or equities, which have many different nuances (expiry dates, dividends, etc.). It also took some cross-sector cooperation, as Gold-i worked in conjunction with PAT Systems, GL Trade (Sungard), Fastfill and LMAX in developing the new bridge.
For a copy of the Gold-i press release click here.