Welcome to Forex-TSD!, one of the largest Forex forums worldwide, where you will be able to find the most complete and reliable Forex information imaginable.
From the list below, select the forum that you want to visit and register to post, as many times you want. Its absolutely free. Click here for registering on Forex-TSD.
Exclusive Forum
The Exclusive Forum is the only paid section. Once you subscribe, you will get free access to real cutting-edge Trading Systems (automated and not), Indicators, Signals, Articles, etc., that will help and guide you, in ways that you could only imagine, with your Forex trading.
Elite Section
Get access to private discussions, specialized support, indicators and trading systems reported every week.
Advanced Elite Section
For professional traders, trading system developers and any other member who may need to use and/or convert, the most cutting-edge exclusive indicators and trading systems for MT4 and MT5.
Reuters and CME's FXMarketSpace venture goes live
FXMarketSpace, the centrally-cleared foreign exchange marketplace established by Reuters and the Chicago Mercantile Exchange (CME), is now live and fully operational, with customer numbers "significantly ahead of expectations".
The partners said last May that they were forming the JV FXMarketSpace, with Reuters providing trading access, trade notification and market data distribution and CME providing clearing and trade matching services. The two companies have each invested $45 million in the scheme and need to attract two per cent of daily FX volume to break even.
FXMarketSpace starts operations with 76 customers either trading live or in the process of joining, and a total of 12 clearing prime brokers already operational. Reuters says an additional eight clearing prime brokers are expected to join the platform soon.
The system allows anonymous trading in spot foreign exchange against the dollar on the euro, yen, sterling, Australian dollar, Swiss franc, Canadian dollar and four cross-currency pairs.
Reuters says customers have successfully tested both their ability to connect to and use FXMarketSpace and have recently started to trade actively in a live environment.
Commenting on the launch Reuters CEO, Tom Glocer, says: "FXMarketSpace represents the next step in the evolution of the FX markets, directly in response to customer demand. It brings innovations including central counter-party clearing, more efficient credit handling, anonymity and raw speed."
Glocer believes the project could be as big for Reuters as Instinet, the electronic communications network which the news and information group sold for $1.9 billion in 2005.
Mark Robson, CEO, FXMarketSpace, says the arrival of the service "means that the doors are now open for a broader and more diverse range of institutions to participate in the global FX market".
With its deal matching engine physically located in Chicago, FXMarketSpace is clearly targetting a new generation of black box program traders and hedge funds operating out of the Windy City. Hedge fund participation in the curency markets has been a key driver behind the recent surge in daily FX volumes.
Reuters' rival Bloomberg last week launched an anonymous insitutional FX dealing platform under the Tradebook banner.
LONDON (Reuters) - Reuters Group said on Monday it had launched its FXMarketSpace trading platform joint venture with the Chicago Mercantile Exchange as part of a drive to tap the fast-growing global currency market.
ADVERTISEMENT
FXMarketSpace is a centrally cleared, global foreign exchange platform for the over-the-counter market that allows deals to be processed anonymously.
The venture, which aims for a slice of the $2 trillion a day foreign exchange market, has not been widely added into analysts' valuations on Reuters, although a growing number have recently begun estimating what impact the business will have.
Many analysts predict average daily foreign exchange turnover could hit $3 trillion by the end of this year, fueled by hedge funds, prime brokers and automated trading.
Broker ABM AMRO earlier this month said FXMarketSpace could add between nine and 92 pence to the share price of Reuters depending on the market share the two companies achieve.
Reuters and the CME have estimated that FXM needs around $40 million of revenue -- roughly two percentage points of market share -- to break even, and this is expected to occur in 2008.
Morgan Stanley analysts said in a note late last week that it valued Reuters' 50 percent stake in the venture at a base case of 31 pence per share and a bull case of 50 pence per share.
"The proposed venture has a highly scalable business model with a largely fixed cost base. The key is the extent to which FX MarketSpace will be able to attract volume," the broker said.
The two businesses created the platform in May, 2006, and said they would have it up and running by the end of this month.
Trading volumes in the global foreign exchange market have been growing at around 16 percent per annum over the past three years, underpinned by the growing interest from hedge funds, prime brokerage and automated trading of FX as an asset class.
FXMarketSpace, which starts with 76 customers either trading live or in the process of joining, allows trading in spot foreign exchange against the dollar on the euro, yen, sterling, Australian dollar, Swiss franc, Canadian dollar and four cross-currency pairs.
At the time of the full-year results on March 1, Reuters Chief Executive Tom Glocer said he believed the venture provided potentially strong growth for a relatively modest outlay.
"We own call option on 50 percent of the upside on an exchange model on the world's biggest asset class that is close to $3 trillion a day and heading to $4 trillion by 2010," Glocer said on the day of the company's full-year results.
Reuters and the CME plan to each invest $45 million split equally between 2006 and 2007.
Other major players in the electronic matching market include interbank platform EBS, which is owned by interbroker dealer ICAP and FX Connect, which is own by U.S. financial services firm State Street.
Earlier this month, Bloomberg L.P. subsidiary Bloomberg Tradebook Services Llc launched an electronic foreign exchange platform called Bloomberg Tradebook FX using liquidity provided by AIG International Inc..
* Email Story
* IM Story
* Printable View
* (What happened to the "Discuss" option?)
RECOMMEND THIS STORY
Recommend It:
Average (3 votes)
4.3 stars
ŧ Recommended Stories
Entertainment News
* Smith died from accidental drug overdose AP
* Kerry laments baseball TV package deal AP
* Eminem, ex-wife, agree to be agreeable AP
* Weiland's wife arrested in clothes torch AP
* U2's The Edge donates guitar to auction AP
Most Viewed: Entertainment
* Smith died from accidental drug overdose AP
* Anna Nicole victim of accidental drug overdose Reuters
* When Tough Love Meets Self-Preservation Dear Margo
* Eminem, ex-wife, agree to be agreeable AP
* Location, Location, Location Dear Margo
Entertainment Video
* MIMS the Word for Hip-Hop ABC News - 31 minutes ago
* Playboy holds first 'Rock the Rabbit' party AP - 1 hour, 43 minutes ago
* Catch a sneak peek of The Onion's online video AP - 1 hour, 46 minutes ago
* Cruise honored for work with LA non-profit group AP - Mon Mar 26, 5:26 PM ET
File photo shows traders calling out trades at the open of the S and P pit at the Chicago Mercantile Exchange on February 28, 2007. Reuters Group said on Monday it had launched its FXMarketSpace trading platform joint venture with the Chicago Mercantile Exchange as part of a drive to tap the fast-growing global currency market. (John Gress/Reuters)
"Many analysts predict average daily foreign exchange turnover could hit $3 trillion by the end of this year, fueled by hedge funds, prime brokers and automated trading."
The last two words is very interesting to me ..hope we can do that with the real proven system
Did you say "good news"?For whom?.Please read the QandA section It states "not available for retail traders"
Yeah, good news for us.
Marketspace i s not a brokerage house, is a trading environment.
Also you canīt trade directly on CME unless trought a broker.
But, the retail traders could be benefited from a centralized environment trading with the brokers operating under it.
You would see the same price like me using different brokers.
The price manipulation itīs impossible because the feed itīs provided from CME/Reuters.
I canīt remember when the electronically trading hit the market in middle 90īs because it was nota trader in this time.
But I had read a lot about that. The immediate effect was the reduction in commission fees. New brokerage houses jumps in the market displacing the old dinosaurs. And the dinosaurs have to self-adapt to survive.
The retail trader was highly benefited.
I wrote something like this yesterday:
I guess itīs time of the "who is who" as i was reading in euromoney.
An interesting article talking about banks. They provide liquidity but they donīt see any profit for that, also if you compare with forex brokers profits, banks are in the dumb chair.
I don't think the banks wants to lose a portion of the pie.
Forex is non-centralized market, but if I have to choose between a common broker and one working under CME with reuters data I donīt think twice.
Also, and maybe, itīs dead time to non commission forex brokers. We all know we pay more than little commissions with the current spreads and price manipulation.
Maybe in a close future, one broker will charge 1 pip per trade as commission, meanwhile the spread will be low or less than 1 pip.
The futures spread and advantages + forex liquidity and advantages.
Well there are two other major groups in this area besides Bloomberg that I know about (and I'm interested in more). Both MBTrading and Hotspot FX qualify as ECN or 'level 2 tradering' I believe. On MBTrading earlier today, I noticed 75,000 lots * 10k sitting in pending trades on the level 2 screen for one currency pair. About 10 seconds later, half of them had moved and this wasn't news time.
In checking the highs and lows against my broker data, I noticed that the ECN had obeyed support and resist lines I had forecast by 1 pip. Broker was 6 pips away. At the same time the broker had a spread of 3 pips while the ECN had a spread of 0 pips. (Low to no volume, JPY session) During GBP and USD markets the spread is usually 1 pip for EURUSD, USDJPY, GBPUSD, USDCHF, plus 4-8 minors that float up to 2 or 3 pips. When the spread is 4 pip, the panel flashes red.
I am very interested in this because I have an EA that is very profitable on ECN data (even at the higher broker spread calculations) but not very profitable on the broker chart data.
I'm in the process now of converting the EA over to run directly on the ECN.
Well there are two other major groups in this area besides Bloomberg that I know about (and I'm interested in more). Both MBTrading and Hotspot FX qualify as ECN or 'level 2 tradering' I believe. On MBTrading earlier today, I noticed 75,000 lots * 10k sitting in pending trades on the level 2 screen for one currency pair. About 10 seconds later, half of them had moved and this wasn't news time.
In checking the highs and lows against my broker data, I noticed that the ECN had obeyed support and resist lines I had forecast by 1 pip. Broker was 6 pips away. At the same time the broker had a spread of 3 pips while the ECN had a spread of 0 pips. (Low to no volume, JPY session) During GBP and USD markets the spread is usually 1 pip for EURUSD, USDJPY, GBPUSD, USDCHF, plus 4-8 minors that float up to 2 or 3 pips. When the spread is 4 pip, the panel flashes red.
I am very interested in this because I have an EA that is very profitable on ECN data (even at the higher broker spread calculations) but not very profitable on the broker chart data.
I'm in the process now of converting the EA over to run directly on the ECN.
Hi,
yes, but how do you get around not being filled or being partially filled?
For example, I have manual demo traded with MBT in view to opening a live account but I find that many times I am not filled on my orders which were not even placed during news times.
Well there are two other major groups in this area besides Bloomberg that I know about (and I'm interested in more). Both MBTrading and Hotspot FX qualify as ECN or 'level 2 tradering' I believe. On MBTrading earlier today, I noticed 75,000 lots * 10k sitting in pending trades on the level 2 screen for one currency pair. About 10 seconds later, half of them had moved and this wasn't news time.
In checking the highs and lows against my broker data, I noticed that the ECN had obeyed support and resist lines I had forecast by 1 pip. Broker was 6 pips away. At the same time the broker had a spread of 3 pips while the ECN had a spread of 0 pips. (Low to no volume, JPY session) During GBP and USD markets the spread is usually 1 pip for EURUSD, USDJPY, GBPUSD, USDCHF, plus 4-8 minors that float up to 2 or 3 pips. When the spread is 4 pip, the panel flashes red.
I am very interested in this because I have an EA that is very profitable on ECN data (even at the higher broker spread calculations) but not very profitable on the broker chart data.
I'm in the process now of converting the EA over to run directly on the ECN.
yes, but how do you get around not being filled or being partially filled?
For example, I have manual demo traded with MBT in view to opening a live account but I find that many times I am not filled on my orders which were not even placed during news times.
Switch brokers, or go up to the ECN if you want to get filled. MBTrading doesn't guarantee your orders, because now you are really trading "over the counter" and need to find a buyer or seller. MBTrading has a parameter for a "buy limit" - in other words you're placing a buy, and how much *more* than market are you willing to go up in order to get your order filled. In a true OTC system, this is a necessary parameter. It is similar to slippage, but not identical.
Good News
Linear Mode
