just now
STARPRIME has completed beta testing of its Market-Maker Model, following a review of execution quality, pricing and risk-management outcomes with selected clients under varying market conditions.
The model is aimed at retail brokers weighing up when to keep client flow in-house and when to pass it on to banks, ECNs or other liquidity providers. Externalising flow can lower a broker's direct market exposure, but the spreads, margin requirements and other terms offered by institutional providers do not always match those given to retail clients, which can make certain trades less economical to externalise.
STARPRIME's Market-Maker Model is designed to offer brokers a further execution option, with pricing closer to retail trading conditions while STARPRIME takes on the management of external liquidity relationships.
The company points to shifting retail trading behaviour, with brokers increasingly having to reassess when to retain flow internally and when to externalise it as clients gain wider access to market information and AI-based tools.
During the beta phase, clients identified segments where externalising flow reduced market exposure and supported more efficient risk and flow management, though STARPRIME noted that results varied depending on client flow, market conditions and execution requirements.
Against STP execution under comparable conditions, STARPRIME recorded faster price updates, tighter spreads during volatility, more efficient execution of larger orders and lower market impact. The company said these findings were specific to the beta-testing scenarios and may vary with market conditions, order flow and execution requirements.
Jay Mawji, CEO, STARPRIME
Jay Mawji, CEO, STARPRIME said:
"The industry's move toward lower execution costs is accelerating. Our focus is on giving brokers another way to manage client order flow while maintaining transparency around pricing, liquidity and execution."
STARPRIME said it plans to expand the execution data and use cases available through its Pricing Section, giving prospective clients more information when assessing the model.
Found this interesting? Become a member of LiquidityFinder and get daily industry news direct to your inbox — join here.
