Information giant Thomson Reuters (NYSE:TRI) announced that it is adding further foreign exchange (FX) pricing granularity for customers trading Australian Dollars (AUD) vs. U.S. Dollars (USD), creating greater accuracy in price quotes in AUD/USD on Thomson Reuters Spot Matching and across Thomson Reuters FX platforms.
The change on Thomson Reuters Spot Matching will add an extra half pip to quote precision of AUD/USD. Instead of being quoted to four decimal places, it will be quoted to five where the value of the fifth decimal must be either 0 or 5. Since the pair trades at a tight spread, the value of each tick is high, and size in the book has improved over the last year, this change allows FX traders to quote more accurately. The change will go into effect at the end of March, and will also be used in all market data feeds and added value calculations. It will also be reflected on all related Thomson Reuters Eikon FX screens.
The change supports the increased use of algorithmic and API driven FX trading in the marketplace, which is in turn driving many of our clients to seek even more granularity in pricing,” said Paul Clarke, Head of FX Venues, Thomson Reuters. “This is an example of Thomson Reuters delivering enhancements to our market leading trading solutions in response to client needs and the ever changing dynamics across financial markets.
This change is the most significant Thomson Reuters has made for the AUD/USD market since June 2017 when AUD/USD was added to the Binary Multicast Feed, providing updates every 25 milliseconds for feed users. Since then, the size at top of book and the depth (measured as a reduction in volume weighted spread to trade defined volumes) have both improved.
Thomson Reuters Matching is an anonymous electronic trade matching system for FX used by thousands of market participants in every region of the world to access and trade on deep liquidity in over 80 currency pairs. In addition, Thomson Reuters FXall is a dealer-to-client FX marketplace used by over 2,300 institutional clients and 180 market makers. Collectively, Thomson Reuters FX platforms support an average daily trading volume of over $407 billion.