DMALink to Add FX Global Code-Only Streams

Emerging markets ECN DMALink says it will expand its FX Global Code-compliant liquidity streams available from on its platform, becoming the latest platform to do so in what seems to be a growing trend in the FX industry.

The firm, which signed a Statement of Commitment to the Code and posted it last month, says it has completed a successful beta run of Code-only liquidity and will now segment market makers into categories based upon currencies and regions to match with client demand.

“Although currently voluntary, the code is a step in the right direction to benefit all market participants,” says Michael Siwek, founding partner and global head of sales at DMALink. “Metrics such as quote-to-order ratio are crucial to sophisticated clients.”

In recent months, CboeFX, 360T and Euronext FX have all announced plans for, or launched, Code-only streams on their ECNs, something that is seen as ramping up the pressure on venues that still persist in allowing activities such as additional hold time.

“We are always working to improve the liquidity provision for all platform participants and over the next 12 months, we plan to broaden the parameters used to establish prudent liquidity utilisation,” reveals Manu Choudary, CEO of DMALink.

“The aim is to work with clients and market makers alike hosting regular workshops to jointly form a benchmark of healthy and sustainable e-FX execution practices, which we hope will shape the future of potential enhanced regulation,” adds Ashwind Soonarane, COO of the ECN.