New Facility Complements Existing Algorithmic and Block Capabilities for Large Trades
GTX, the institutional arm of GAIN Capital Holdings Inc. (NYSE: GCAP), has launched full-amount streams on its ECN platform. The new full-amount facility, which enables clients to execute small and medium-sized spot FX orders on prices for the entire trade quantity, is designed to minimize information leakage and market impact for buy-side traders as well as benefit liquidity providers.
For buy-side traders, full-amount streams minimize pre- and post-trade information leakage and market impact by limiting knowledge of the prospective order (pre-trade) and execution (post-trade) to the buy-side client and the single liquidity provider counterparties to the transaction. This dynamic benefits the sell-side counterparty as well, enabling it to manage the position without concerns other sell-side firms are trading based on their awareness of the trade.
“We are pleased to launch full-amount streams, which we designed in close collaboration with key buy and sell-side clients,” said Vincent Sangiovanni, CEO, GTX. “Full-amount streams enhance GTX’s utility to portfolio managers and other traders who prefer to deal in one transaction on one price with one counterparty for an entire quantity.”
Full amount streams complement existing algorithmic and block execution capabilities available through GTX’s ECN and voice agency desk respectively. GTX’s ECN is a widely used venue for third-party algorithms from banks and independent providers. GTX also provides flexible execution algorithms via its front-end GUI to ECN clients free of charge. In addition, GTX’s voice agency desk enables eligible clients to trade blocks anonymously on liquidity sourced from more than 35 liquidity providers.