GAIN Capital updates rules of engagement for liquidity providers on GTX


GTX, the institutional electronic communication network owned by Gain Capital Holdings Inc (NYSE:GCAP), announced today a revision of its rules for engagement with liquidity providers.

“Refining the rules of engagement of our liquidity provision will deliver a superior trading experience to our customers,” said Steve Reilly, Head of Liquidity at GTX. “These measures will improve the response time and fill ratios for our clients while reducing trade rejections.”

gtx_shadowedThe new rules focus on market makers providing Reviewable Liquidity – orders and quotes submitted to the GTX venue which must be accepted or declined prior to execution.

The updated rules include:

  • 250 millisecond response times: market makers are required to accept or decline incoming orders within 250 milliseconds, instead of the previous 500 milliseconds;
  • 80% to 85% Targeted Acceptance Rates: market makers are expected to adhere to an acceptance rate of no less than 80%-85% of the orders;
  • Minimum quote sizes of $1 million: market makers must quote a minimum size of one million of base currency to assure a level playing field;
  • Minimum average daily volume of $200 million: a market maker must maintain average daily volume (ADV) of $200 million or more, aggregated across all price feeds (including firm liquidity).

“The market has recognized our unique value proposition, which has resulted in strong volume growth for GTX,” said John Miesner, Global Head of Sales at GTX. “This unique value proposition includes a commitment to delivering the highest standards of liquidity provision and execution, transparency around the rules of engagement and access to an increasing diverse range of participants through our prime of prime services.”

GTX’s ECN volume rose 36% in the first half of 2015 compared to the equivalent period a year earlier.

The announcement from Gain’s GTX comes just a day after another Forex ECN – FastMatch, announced an update to its operating procedures, in an attempt to enhance transparency.

To view the official announcement from Gain Capital, click here.

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GAIN Capital updates rules of engagement for liquidity providers on GTX

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