Awards: ParFX

ParFX introduced a completely new concept to the market when it launched five years ago, to thwart the efforts of high-frequency trading firms gaining an advantage by using technology and ultra low-latency trading – randomisation.

This year, ParFX has been voted Best e-FX Trading Venue of the Year at the 2018 FX Week e-FX Awards – its second win since the venue launched. In 2014, the firm nabbed the e-FX Initiative of the Year award, which recognises a contribution to industrywide change.

Shortly after ParFX launched, incumbent multi-dealer platforms EBS and Thomson Reuters followed the platform in introducing randomised pauses.

“We’re flattered to a certain degree that a number of platforms have tried to change direction in an attempt to emulate our pure principles,” says Roger Rutherford, chief operating officer of ParFX. “It validates what we’ve been trying to do.”

However, Rutherford has an issue with competitors following suit, or at least in the way they have done it, as randomisation must happen at the point where trades arrive at the venue. He also notes that competitors did not follow suit when it comes to other aspects, such as charging a universal brokerage fee and free market data.

Other platforms believe they’ve replicated randomisation … but no one on the Street has successfully introduced the meaningful randomised-order element that truly differentiates our matching engine

Roger Rutherford, ParFX

“True randomisation happens at an order-entry level on all order elements. Other platforms believe they’ve replicated randomisation by introducing latency floors and slowing down or batching orders, but no one on the Street has successfully introduced the meaningful randomised-order element that truly differentiates our matching engine,” Rutherford says.

ParFX also set out to reform the way platforms charge for market data, and it has had variable brokerage fees that are based on relationships in its sights since launching. The venue has never offered last look and it also provides full post-trade transparency.

“Independent and neutral”

“Aside from randomisation, the reality is they haven’t been able to change in a way that replicates across all elements of our model. Furthermore, we are the only platform that the market can call truly independent and neutral,” adds Rutherford.

The core values of ParFX are now also supported by the FX Global Code, which promotes fairness and equal access, as well as transparency surrounding trading behaviour.

Club-style liquidity pools, preferential access to market data and the inappropriate use of last look are not part of the future, Rutherford says.

“The vision, that was brought to us back in 2012, is consistent with the way the market has grown and developed, and addresses the issues being debated in the market today. In effect, the vision was future-proofed,” he adds.

VIEW THE LIST OF WINNERS