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Gold-i’s Multi-Asset Liquidity Management Platform: Matrix
Gold-i and Liquidity Finder have similar goals – we want to make it easy for brokers to select and access the best liquidity for their clients.
Gold-i’s multi-asset liquidity management platform is used by an increasing number of Liquidity Finder clients, so we spoke to Tom Higgins, CEO, Gold-i to find out more about the product’s main features and benefits.
Why did Gold-i develop Matrix?
Gold-i’s focus has always been on developing products which can help brokers to operate more efficiently, manage their risk more effectively and become more profitable. As the market evolved, Gold-i spotted an opportunity to provide brokers with an enhanced way of managing multi-asset liquidity from various Liquidity Providers whilst also providing them with easy access to the best liquidity in the market at the best prices.
What are the benefits for brokers of using Gold-i’s Matrix?
Matrix enables brokers who use MT4, MT5 or any FIX-based system to pool their multi-asset liquidity, create spread profiles and stream them into multiple top-end trading systems.
It has two clear benefits for brokers. It provides a sophisticated multi-asset liquidity management platform for their retail clients and it enables them to enter the institutional space by distributing their liquidity to other brokers in Gold-i’s global client network.
At what stage in a broker’s lifecycle should they consider Matrix?
Traditionally, as a broker grows they want to consume liquidity from multiple providers and this is the point when Matrix is ideal. There are a variety of reasons why brokers may want to increase their LPs - for example, they may want to differentiate by offering other asset classes, or they may want to offer the tightest spread possible and need to aggregate feeds to obtain a Best Bid or Offer.
If they are increasing their number of Liquidity Providers, they may also require a more robust solution. If, for example, their primary LP feed goes down, they will need to automatically failover to a secondary connection and Matrix has the ability to do this.
What are the key features of Matrix?
Matrix is a very easy to use, highly flexible, multi-asset liquidity management platform, with multiple routing and aggregation methods. In addition, we have developed a dashboard called Matrix Insights which provides top line information to enable brokers to analyse order routing and execution statistics across all asset classes. Brokers can see where rejections are coming from, where their best execution venue is and where the least slippage is occurring. These stats are invaluable in terms of planning different liquidity strategies for different client types and maximising profitability.
Which Liquidity Providers can Matrix brokers have access to?
Brokers using Matrix can connect to over 70 high quality multi-asset Liquidity Providers and technologies. This ranges from large multi-national brokers seeking multi-asset liquidity from Prime of Prime or Non-Bank providers, to smaller brokerages who may have difficulty accessing liquidity from traditional venues and hence are willing to take liquidity from larger Brokers that may be less stringent with their counterparties.
What is Gold-'s Matrix Net?
Matrix Net is an extension of our Matrix technology. It is used by leading Liquidity Providers and Prime of Prime brokers to distribute liquidity to our global NETwork of clients, as opposed to Matrix, which is used by brokers to consume liquidity.
We have forged partnerships with very high calibre multi-asset Liquidity Providers, many of whom are listed on Liquidity Finder.
To sum up the benefits of Matrix Net, brokers connecting to a Matrix Net Liquidity Provider benefit from discounted transaction fees within a secure and reliable NETwork. Liquidity Providers using Matrix Net benefit from cost-effective, enhanced multi-asset distribution capabilities.
How many Liquidity Providers do you think a broker should select?
I don’t think there is a definitive answer as it depends on the broker’s strategy and areas of focus. The key thing is for brokers to match Liquidity Providers to their specific requirements – for example, they may wish to have separate LPs for cryptocurrencies, FX and CFDs, selecting specialist LPs in each of these areas. Depending on the broker’s client types and the service they offer, they may wish to find an LP who specialises in large ticket sizes or no last look, for example. The great thing about Liquidity Finder is that they can assess the strengths of the different Liquidity Providers and make more informed decisions about who to partner with.
Gold-i specialises in multi-asset liquidity management, advanced risk management tools and business intelligence software, helping brokers to make more money, reduce risk and differentiate from competitors. The award-winning global FinTech company also offers a range of MT4 and MT5 plug-ins to enhance the capabilities of these MetaTrader platforms. For further information, visit www.gold-i.com or email [email protected]
