Forex exchanges that use the Central Limit Order Book (CLOB) system to match buyers and sellers have seen double-digit growth in activity in 2022.
The CLOB approach is used by most exchanges and is offered as an alternative to asking for quotes. This will allow all kinds of participants to trade anonymously with each other in real time. The closer you get to the best bid and ask at any given time, the faster your trades will execute.
Some market participants said the importance of firm pricing in a volatile market was one of the reasons for the rally.
Jeff Ward, Global Head of EBS at CME Group, a derivatives marketplace, said: “Furthermore, some customers value executions in the primary market given the transparency of the central limit order book. The customer who said
Market data and speed of execution have improved with primary CLOBs, but ECN still outperforms them in terms of competitive pricing, flexibility, speed, and execution options.
Clinton Norton, Euronext
Some traders may think that CLOBs are more expensive than simply executing a risk transfer transaction with their bank counterparty of choice, but that is too simplistic a picture for FX-focused execution. suggests Jamie Singleton, chairman and chief executive officer of the Cürex Group. Service and Data Analytics Provider.
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