Liquidity Provider
Working out services for institutional clients is one of the main directions of the Company's development. Using the rich experience of interacting with various liquidity providers, ForexChief has developed its own stream aggregation architecture that allows the Company to have significant reduction of spread sizes, slippage sizes, and percentage of refused orders. This way, the technological solutions developed allow the Company to provide services as a liquidity provider for each forex broker interested in a stable stream of quotes and qualitative execution of orders.
When analyzing the institutional segment of Forex services, it becomes evident that the «classical» dealer business model (when the Company acts as «the second party» in a transaction) does not stand competition because of low quality of client order execution. Therefore, as an alternative, forex brokers have to look for effective solutions on the basis of STP (Straight Through Processing) technology, whose concept is built around Non Dealing Desk mode that leaves out dealers (the Company employee or a special software operating at forex broker's server). It is important to mention that STP is only the general principle for building a business model that implies «instant» coverage (i.e. without prior processing of an order) of client orders; in this regard, only the liquidity provider, aggregation server, or ECN platform may act as the order's «final stop».
Considering the cost of the project for development of a personal technical solution, complexity and duration of work, it is clear that these investments are not practical for the companies that are just beginning their work. Accordingly, ForexChief offers the ready-made solution to forex brokers that allows not only obtaining a qualitative stream of quotes but also coverage (hedging) of client's positions in automatic mode.
