Euronext FX Adds More Performance Data to Website
Posted by Colin Lambert. Last updated: August 9, 2023
With The Full FX view
The shift towards more transparency in how platforms are performing continues with Euronext FX adding several new datapoints to its website, including fill rates, round-trip times and platform latency. The release sees the platform join Cboe FX in providing this type of metric for existing and potential clients.
The move comes as certain FX platforms lead the drive for greater visibility over their performance, encouraged largely by The FX Global Code and the demand for greater transparency, especially in anonymous environments. It follows Euronext’s decision last year to default liquidity on its FX venues to Code-adherent providers, which was itself part of a wider move among platforms, most notably Cboe FX and 360T GTX, to encourage LPs to commit to The Code.
In the latest update, Euronext FX is providing last look fill rates for the previous 30 days, broken down by its Skew Safe, Full Amount and Platform liquidity pools, it will also publish the round-trip time for last look liquidity for both its New York and London matching engines.
Platform latency is also being provided, and is updated every 60 seconds. This shows the median speed of a FIX order to Ack, as well as to Feed, in both New York and London. The 30-day percentage of anonymous liquidity across the platform will also be published, as will the number of bilateral counterparties and Code signatory LPs.
The Full FX View
Although it feels somewhat like a game of leapfrog, the current trend of platforms raising the bar when it comes to how they operate is to be welcomed. Euronext FX and Cboe FX in particular seem to be leading the way and demonstrating what has long been my view – best practice in markets, that truly protects all parties, is transparency of action, not order.
There were some raised eyebrows last year when Euronext FX accompanied its move to default Code liquidity with a white paper that suggested “Code” liquidity wasn’t always best, more pertinently in the revelation that over 30% of turnover on the platform was with non-Code compliant LPs. Sources tell me that this percentage is dramatically lower, thanks to a combination of the default mechanism itself, LPs desire not to be caught in that trap, and raised awareness amongst liquidity consumers.
While the desire to promote best practice and the Code is genuine, there is, of course, another factor in play here – Euronext clearly thinks its technology is performing well and wants to advertise that fact. As potential clients start looking at ECNs, technology performance will be an important factor for many, it will sit alongside the importance of connectivity and workflow as key elements when selecting a venue.
Looking ahead, it is notable that the exchange group is not, yet, providing the same data from its Singapore and Tokyo engines. It is to be hoped that the next stage will be the addition of those centres, for while it is true that the Asian engines handle a much smaller ratio of volume on the platform, this may well change. Certainly the amount of volume reported every six months by the Singapore FX Committee in its turnover report suggests that the region is growing, and is, presumably, embracing the e-channel.
Whatever is driving the shift is to be welcomed, however, as this increases the pressure on the few standouts to adhere to what is widely regarded as best practice in FX market. There is, naturally, more to be done – not least some of the other platforms catching up, even in the bilateral, disclosed, space – but the sense of momentum is real, mainly thanks to the changes brought about by Cboe, Euronext and 360T GTX.
“We have added key data points to our website on platform fill rates, RTTs, and latency,” says Clinton Norton, global head of sales for Euronext FX. “We are proud of the achievements this data reflects and feel that it is important to make this type of information public and as close to real time as possible. We feel this is a significant step in our continued support for transparency in the FX market.”