The vast majority of FX trading volume is now traded via electronic channels, where buy-side clients and sell-side liquidity providers lean heavily on these technology providers to efficiently execute trillions of dollars a day in the world's most liquid market.
While these buy-side clients and liquidity providers (LPs) are subject to stringent market standards and regulations around execution behaviour and performance, technology providers typically operate with little to no transparency regarding their internal platform performance, despite this being a leading factor influencing execution performance and transaction cost for end clients.
This whitepaper explores the need for industry-wide transparency in technology performance, outlines the key principles of fair and open data sharing, and proposes a framework for establishing meaningful standards, based on the same framework and open data sharing model we deploy at Reactive Markets for our clients today.
