FX electronic communication network FastMatch has deployed a customised algorithm developed by Pragma Trading at the heart of AgencyFX, its new buy-side liquidity pool unveiled in late January.
AgencyFX aims to augment the need for market makers with a continuous mid-point matching engine through which buy-side firms can trade directly with one another. The Pragma algorithm allows users to split up their orders and trade portions in different liquidity pools, explains Dmitri Galinov, chief executive of FastMatch.
“The algo allows clients to take a large proportion of the order and cross it at the mid-point, while simultaneously taking a smaller part of the order and participating in the broader FastMatch market. We don’t believe there is anything like this available elsewhere,” says Galinov.
AgencyFX also offers an auction service, known as SafeMatch, which delivers an executable rate at 4pm London time as an alternative to the WM/Reuters fixing rate.
“The rate is determined from the midpoint of trades on FastMatch during a five-minute window before and after 4pm and is completely transparent; we plan to start publishing it on our website in April,” says Galinov.
FastMatch, which is part-owned by online FX broker FXCM and based on the Credit Suisse Crossfinder matching engine, first launched in mid-2012.