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Screenshot of a breaking news alert e-mail from Q2 2017
Forex ECN FastMatch has announced that its proprietary algorithmic and transaction cost analysis (TCA) services are now available to all subscribers.
FastMatch recently reported its best ever month for FX trading volumes, with November coming in at $17.1 billion ADV.
FastMatch is jointly owned by retail forex broker FXCM Inc (NASDAQ:FXCM) and commercial banks Credit Suisse Group AG (ADR) (NYSE:CS) and BNY Mellon Corp (NYSE:BK). FXCM has been active monetizing assets to pay down its high interest loan from Leucadia National Corp (NYSE:LUK) – most recently selling its DailyFX research and news site to IG Group Holdings plc (LON:IGG) for $40 million. We believe that FXCM’s stake in FastMatch may be next on the block.
The FX market has seen a significant rise in the use of algorithmic execution. FastMatch has been offering algorithmic trading to asset managers via its AgencyFX product for the past 18 months to satisfy this increasing demand. FastMatch is now announcing that its algorithmic and TCA products and services are available to all subscribers.
Clients using FastMatch algorithms will receive automated TCA reports upon completion of their orders showing the algorithmic execution performance versus arrival price, FastMatch midpoint and other benchmarks. FastMatch midpoint is calculated by the platform every millisecond and transparently published to all market data consumers allowing them to independently verify FastMatch TCA reports.
“Asset managers have been successfully using FastMatch’s algorithms for over a year and a half. Now FastMatch will offer these algos to everyone,” said Dmitri Galinov, CEO of FastMatch, Inc. “There are two significant differentiators of FastMatch algorithms versus other providers. First, FastMatch operates an ECN where liquidity for algorithmic execution is customized to provide minimum spreads and minimum market impact. Second, FastMatch algorithms rely on proprietary patent-pending flexible matching logic for execution. Flexible matching is a sophisticated order routing system that prioritizes liquidity providers based on their price, historical fill rates, response times and market impact for every trade.”