22 September, 2020 - CFH Clearing have announced today the creation of a dedicated Zero-hold-time liquidity pool aimed at clients whose priority is speed of execution. The Zero-hold-time pool is also aimed at those clients who want multiple liquidity pools for different trading strategies - all through a fully cross-margined single account where everything is fully netted down automatically, providing a capital and cost-efficient solution.
Counterparties in the prime-of-prime space tend to focus on either speed of execution or good pricing with a hold time, meaning that traders who want to take advantage of both have to sign-up in two places and split their funds. CFH's new Zero-hold-time pool allows their clients to now trade on both through the same account.
Andy Biggs, Head of Liquidity, CFH Clearing, commented, “Historically there has been a trade-off between speed of execution and pricing. Traders should have the option to choose which is right for them based on their trading style and requirements.”
According to the company's announcement today, the CFH Liquidity Team has curated a Zero hold time pool that minimises the gap in pricing to standard feeds and has sustainable pricing that performs well in times of volatility.
CFH’s Liquidity Partner, XTX Markets, the world's third largest liquidity provider in FX, has operasted a zero-hold-time model since 2017. Both companies believe that the market will move to a Zero hold time model in the future as the justification for imposing a holding window weakens, due to the speed at which primary market data is updating.
Matt Clarke, Head of Distribution and Liquidity Management EMEA, XTX Markets, commented, "Extending Zero hold time liquidity is a fantastic initiative. This product shows there is no reason for hedge funds and established brokers to accept excessive last look windows or quotes they cannot hit, in today's market." XTX Markets has made a commitment to zero-hold-times in FX pricing since 2017.
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