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Will Liquidity, Regulation, And Forex Global Code Continue Benefitted To Market Participants?

Blog | 06 May 2021 06:47/PM GMT

Volatility in the financial markets has accelerated market trends. In forex, it has made market participants even more amenable to expanding their universe of liquidity providers to non-banks.  

Market participants recognize that non-bank liquidity sources are complementary and that it is essential to continue to provide pricing.  

While volatility changed the market participants’ perceptions, we will discuss if the liquidity, regulation, and forex global code will continue benefitted for them in this article.  

20210429_1_Liquidity Forex Global Code Regulation

Forex Global Code 

The forex Global Code is a compilation of best practices for participants in the forex industry. It aims to ensure the wholesale forex market’s integrity and performance. 

In other words, the forex Global Code was instrumental in allowing the participants to establish uniform rules of engagement. This approach allowed operations to continue without suffocating the market’s productive activity.  

Many large-scale projects, however, take time to develop from conception to completion, and this one is no exception. With the advent of a new generation of liquidity providers – and the opportunity to enter, the Global Code now becoming more widely available.  

Given the role, Global Code is lead with principles such as:  

1) Ethics: Market participants are expected to act ethically and professionally to maintain the forex market’s fairness and integrity.  

2) Execution: When negotiating and conducting deals, market participants are supposed to be cautious. This is to foster a forex market that is robust, fair, open, liquid, and appropriately transparent. 

3) Risk management and compliance:  

Participants in the market are required to foster and maintain a robust control and compliance environment. As a result, the risks associated with their participation in the forex market are effectively identified and reported in a manageable manner. The Global Code will be revised regularly and is expected to develop collaboratively as well. 

For example, Doo Clearing is increasingly playing as an institutional liquidity provider and will help bolster your position in this arena. 

Liquidity Providers  

While there is a growing number of liquidity providers, Doo Clearing for example continues to expand its liquidity offerings as a reputed and trusted liquidity provider.  

At Doo Clearing, 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, therefore getting the best price possible while keeping the prices stable and as low as possible.  

Regulation 

It’s important to distinguish between the constraints that apply to retail businesses and those that apply to institutional businesses. 

In Europe, there is little consistency across the single market and, as a result, national regulators have seen making different requests of the brokers they oversee. There are now perhaps some early signs of convergence being observed – regulators have visibility across multiple firms, they co‑operate with counterparties in neighbouring jurisdictions and many brokers are in turn reporting to multiple authorities. 

Different institutions have different models, serve different types of clients and specialize in specific currencies and regions.  

Doo Clearing is here to stay and supports your global business development through our service and technical advantages. We try to understand every client’s needs and expectations, we listen, discuss, and are honest in providing suitable services for that client.  

Also, we fully understand the strengths and weaknesses of each liquidity provider in our portfolio.  

20210429_2_Liquidity Forex Global Code Regulation

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  

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