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Staying ahead of the curve
LMAX Exchange CEO, David Mercer, shares his thoughts on the current technology innovations which could influence how trade execution is conducted in the future. David comments it is becoming harder for venues to meet the needs of the consumer, we all have to accept mobile technology and the way content is consumed will change in the coming years.
David Mercer, LMAX Exchange CEO, shares insights.
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Changing dynamics in FX trading – how should platforms adapt?
LMAX Exchange CEO, David Mercer, shares his thoughts on the changing dynamics in FX trading and how platforms should adapt.Discussion topics:
- The current environment of see-sawing volumes…is that a frustration to a newer platform?
- What was it that attracted new platforms to launch during 2011/2012
- What is your take on rules, and how do you ensure a level playing field?
- What policies do you impose to throttle customer orders or limit HFTs who are just gaming the market?
- Are there parts of the market where they’d want a randomised pause to prevent latency/technology arbitrage?
- What is ‘last look’? And why does LMAX Exchange not have it?
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FX markets – expect the good times to come back
LMAX Exchange CEO, David Mercer, shares his thoughts on the recent ECB interest rate cut of 0.1% which saw a rebound of volatility in the FX market. David comments that this is evidence for venues to continue with their particular business models throughout this current period of low volatility as he strongly expects for the markets to return to previous levels.
David Mercer, LMAX Exchange CEO, shares insights.
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Randomisation – the best way to trade?
David Mercer, LMAX Exchange CEO, comments on recent discussions of randomisation, in particular questioning why some FX venues feel it necessary to introduce the model of randomisation when matching orders. He asks if randomisation is the best way to trade, and if it is why has it not been introduced across all asset classes as well as being introduced across all currency pairs. Mercer speculates that randomisation might be a short term fix to provide greater transparency for the implementing venues, however states he personally does not see a valid reason for any venue to this pursue this model.
David Mercer, LMAX Exchange CEO, shares insights.
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Dark, Dusky or Lit – What is the optimum way to trade?
LMAX Exchange CEO, David Mercer, shares his thoughts on the optimum way to trade – is it dark, dusky or lit and what is the optimum platform for any given customer.
Mercer states every market whether trading via multi or single dealer platforms have some element of grey and dusk, as truly lit venues cannot operate without the dark and visa versa, and sees no reason for the market structure in FX to change in the near future.
David Mercer, LMAX Exchange CEO, shares insights.
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Internalisation – a good thing for the marketplace?
David Mercer, LMAX Exchange CEO, shares his thoughts on the adverse comments regarding the greater internalisation of flow within major banks. Mercer believes this could possibly be good for the marketplace in general, as certain venues can benefit from banks optimising their risk management along with the greater flow potential from the internalisation model, in turn delivering a better price to the end client. The current FX eco system can work well with external venues and banks internalising as much as possible.
David Mercer, LMAX Exchange CEO, shares insights.
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Spot FX – on its way back?
David Mercer, LMAX Exchange CEO, comments on the recent trend of major venues reporting declines in FX volumes. He believes this will stop, with venues expected to report an increase in volumes in March due to increasing confidence in the market along with greater volatility and opportunity. Overall, 2014 should be a good year for the FX market as a whole.
David Mercer, LMAX Exchange CEO, shares insights.
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“Flash Boys†– Rigged or Imperfect?
David Mercer, LMAX Exchange CEO, shares his thoughts on the recent book release of “Flash Boys†and the sensationalist views expressed by its author Michael Lewis. David Mercer comments, algorithmic execution is a part of high frequency trading (HFT) and that all market makers and exchanges engage in HFT. Exchanges are very transparent venues with everyone having a choice as to whether they trade there or on another venue, and the notion that an author has uncovered rigging in the markets is false.
David Mercer, LMAX Exchange CEO, shares insights.
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Safer & more efficient markets following 2013 – 2014 regulatory changes?
LMAX Exchange CEO, David Mercer comments on whether the markets are safer and more efficient following the regulatory changes seen in 2013 and at the start of 2014. David Mercer suggests the full effect is still yet to be seen, however trade reporting and central clearing can make the markets safer and more efficient if […]
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Greater Transparency through Randomisation?
LMAX Exchange, CEO, David Mercer shares his thoughts on the recent news on how the randomisation of an order book leads to greater transparency.
David Mercer comments the efficiency of randomisation might be perceived as a short term solution to greater transparency, however randomisation is not practised in any of the major global exchanges and experience to date dictates clients do not want their order filled randomly.David Mercer, LMAX Exchange CEO, shares insights.
TCA and fair execution.
The metrics that
the FX industry must use.
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