Currenex, HotSpotFxi, Lava - Pimps for the Banks? - No Scalpers

Nick, we are not trading on CX yet, despite having all our agreements with a few brokers in place. The set up we have at another firm is a rig similar to CX in principle, where you have a few banks posting liquidity. The greatest size we did there was $3.5 million a clip before we got shut down on 11/29/06. We made good money despite the fact that we were getting over 65% of our trades rejected. Some executions were at the price clicked, but most where within 2-pips from the market price (as specified by us). It takes time for the order to reach its destination after you press buy or sell. If this is being done on a fast market, you can't expect the price to be the same even 100ms later.
 
Banks trade currency futures and CME and other exchanges all day long. I've traded with and been in some of the biggest foreign exchange dealing rooms in the world (ABN Amro for one). They have professionals who do nothing all day but execute futures business to offset their spot exposure.

The whole dynamic for foreign exchnage trade is changing rapidly and as we enter 2007 you will see even more of a shift into futures. The CME recently set records for contracts traded per day and open interest. Leo Melamed is the founding father of FX futures and he's quoted in the recent Fortune Magazine stating FX futures are what he trades still to this day.

Watch in early 2007 for the launch of FXMarketspace. This joint venture between CME and Reuters is going to be huge.

http://www.fxmarketspace.com/
 
Quote from danger66:

Nick, we are not trading on CX yet, despite having all our agreements with a few brokers in place. The set up we have at another firm is a rig similar to CX in principle, where you have a few banks posting liquidity. The greatest size we did there was $3.5 million a clip before we got shut down on 11/29/06. We made good money despite the fact that we were getting over 65% of our trades rejected. Some executions were at the price clicked, but most where within 2-pips from the market price (as specified by us). It takes time for the order to reach its destination after you press buy or sell. If this is being done on a fast market, you can't expect the price to be the same even 100ms later.
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Quote from NickBarings:
I know a guy who had to stop trading
with a currenex provider because he
was trading profitable news with only 3 million
[/B]
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Who are the brokers you two talking
about?
Is it white label like fxsomebody suspects?
 
Quote from fxsomebody:

The numbers above are incorrect. Reuters is much higher, FXAll numbers include T/N swaps and the spot volume is only around 6b per day average and overall volume average is much lower. EBS is about correct on average.

Currenex is the 3rd largest platform for spot transactions behind EBS and Reuters.
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As you know, the most recent (5th) annual Euromoney Foreign Exchange Poll, published last May, shows that Currenex is behind both Hotspot FXi and FXall in market share among multibank platforms. This is true both in terms of 1) overall turnover and 2) spot only turnover, without forwards and swaps.

Are you saying that the market share data has changed significantly in the last few months, do you take issue with EM's methodology, or something else? Thanks.
 
Quote from fxsomebody:

Not sure why you keep referring to banks. If you are using a white label provider who also sources liquidity from the generic Currenex platform, then most (80%) transactions are customer to customer transactions.

Currenex as a technology vendor has many customers white labelling its software differently and each set their own rules. It is not fair to generalize "Currenex" in your statements as which Currenex is very meaningful.

Currenex does not know who its customers customers are.
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Until recently when retrieving the trade details from the cnx platform you provided the cpty to the trade. Whilst I am most def not representive of the total set of cnx users, I do tend to trade more during fast mkts when you yourself have stated where most cnx transactions occur. I can state for a fact that >90% of the trades were with a bank and not another cnx user
 
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