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Why Customised Forex Liquidity Pools Is Important? 

Blog | 11 May 2021 11:14/AM GMT

Availability of liquidity in the financial markets provides you with many advantages. Therefore, it is worth discussing the importance of customised forex liquidity pools.  

Liquidity in forex represents market participants’ preferences in terms of both the total number of traders and the total trading volume per unit of time. 

In other words, the highly liquid market is characterised by the existence of a large volume of demand and supply. Forex is the most liquid market and the higher the market liquidity, the quicker a large stake can be liquidated. 

As volatility continues to remain occurs and taking into account the fact many firms are expanding their currency trading universe. The role of the liquidity manager has become far more key to providing customised solutions. 

Factors such as average ticket size, round trip requirements, a regional currency, and third-party costs all define the mix of liquidity providers available to a client’s bespoke pool of liquidity. 

Forex Liquidity Pools

Multiple Streams  

In recent years, liquidity providers (LPs) have become more important. With advances in technology competition from non-bank market makers, LPs now able to provide firms with multiple streams.  

So, the skill of the liquidity manager is creating a bespoke stream which most suits the client’s requirements.  

One of the most significant technology developments in recent years has been the availability of post-trade data analytics tools. This helps providers identify the balance point between their commercial interests and those of their counterparties. 

New technology exists to help firms such as Doo Clearing to identify mutual opportunities so that they can all ensure their businesses are commercially sustainable in the long term. 

Customised Forex Liquidity Pools 

Here at Doo Clearing, we make the process smooth and hassle-free for brokerages, fund managers, and other institutional traders.  

Furthermore, our liquidity solution is tailored to institutional and high-volume traders who need fast and immediate access to institutional forex and CFDs. 

While there is a growing number of liquidity providers, Doo Clearing is here to stay and supports your global business development through our service and technical advantages.  

We continue to expand the liquidity offerings as a reputed and trusted liquidity provider. We have created 100% real-time trading (Direct Market Access and Straight Through Processing mode) and up to 99.99% system availability.  

This also includes as low as 1ms trade execution time, to create the ultimate trading experience.   

Besides, Doo Clearing’s aggregate prices are across numbers of tier-one bank liquidity providers, for a fully aggregated market depth.   

Liquidity aggregation affects your profitability a great deal. It allows traders to deal with only one company, and have their order automatically spread over multiple price feeds. 

So, in summary seeking the bespoke aggregation and liquidity services of non-bank liquidity providers is crucial. You should interrogate a provider’s skill at selecting best-in-class aggregation and distribution technology.  

Forex Liquidity Pools

About Doo Clearing      

Doo Clearing is part of The Doo Group, aiming to offer an institutional and bespoke level of liquidity access and clearing services for Forex and CFDs in equities, future and commodities, and other financial products.      

With the robust clearing system powered by Doo Tech, Doo Clearing is now serving brokers, broker-dealers, hedge funds, family offices, fund managers, and professional traders globally.   

Currently, Doo Clearing provides liquidity access and clearing services via our regulated entity in the United Kingdom. The Doo Group has other regulated entities in the United States, Mauritius, and Vanuatu, with operating centres in Hong Kong, Dallas, Singapore, Kuala Lumpur, and among others.    

To get started, contact Doo Clearing’s Specialist team today for an insightful preview of how we can bring your brokerage to the next level.      

London Office      

Email: [email protected]      

Website: www.dooclearing.co.uk     

Hong Kong Office      

Email: [email protected]     

Website: www.dooclearing.com