This day in history: September 30, 2009 – Integral begins to offer brokers direct access to interbank FX market

We take a look back at “This day in history” within the world of FX taking a journey through annuls of time to look at the various groundbreaking developments that continue to take place in our fascinating.

trading

Six years ago today, the world’s retail FX brokerages were beginning to set their sights on emulating the institutional and proprietary trading floors of the world’s major financial centers by shifting from a closed system in which all orders were executed via an internal desk, the modus operandi for which the MetatTrader 4 platform was originally designed, to a direct market access model, which was facilitated by a series of specialist software developers that were established around that time in order to provide liquidity bridges and price feeds to retail firms via the very same MetaTrader 4 platform that had gained ubiquity by the end of the last decade.

Thus, on September 30, 2009, Integral Development Corporation began to provide direct market access to the interbank FX market by offering retail brokers dealable liquiity and free market data on a historical and real time basis via its TrueFX service.

The Californian company noted at the time thata dramatic shift in how FX market participants gain visibility into interbank FX rates and obtain market data, stating that by increasing transparency and auditability for everyone, Integral Development Corporation predicted the emergence of a safer and more predictable market which would open up opportunities for greater market participation globally.

The company built this new solution based on its FX Grid product, Integral’s global inter-institutional connectivity and trading network, linking market making banks to FX market participants, TrueFX is live and in production today. On the portal site TrueFX.com, Integral had began to publish tick-by-tick historical and real-time market data free of charge to all market participants.
As a result, users of the service began to receive access to clean, aggregated, dealable bid and offer prices direct from leading market makers.

Making a statement on this dynamic back in 2009, Integral Development Corporation’s CEO Harpal Sandhu, who remains CEO to this day, stated “Once the query-based search is implemented, anyone will be able to spot check individual trades they executed, and compare the rate they got from their institution to that of the multi-source liquidity feed.”

“TrueFX is a paradigm shifting event that will change the way foreign exchange markets are organized. By providing clean, dealable prices supported by free real time and historical tick-by-tick data, we believe the overall confidence in the market will increase, which in turn will lead to much greater market participation” he concluded.

“The FX market has developed into a loosely integrated set of decentralized markets,” said Larry Tabb, Founder and CEO, Tabb Group at the time “For the FX market to reach its true potential, we will need to lower entry barriers, reduce cost, eliminate friction, increase transparency, and most importantly increase the safety for retail traders. This will open the FX market to a wider array of participants and expand the market dramatically” he enthused.

Launched six years ago, features of TrueFX included facilitating a “No Dealing Desk” operation, back-to-back cover trading, integration with prime brokers, a netting facility for high-volume small-size tickets, and customer account segregation capabilities.

Names which have now long since been consigned to the history books were original supporters of the TrueFX initiative, including ODL Securities, a British spread betting company that was purchased by FXCM shortly afterwards, and PFGBest, which went to the wall at the beginning of this decade, during the period at which the United States authorities began an overhaul of how firms in its region operate with specific attention to their capital bases.

At the time of launch in 2009, Integral Development Corporation explained that it had been working on making historic tick-by-tick bid-offer data available, eventually going back to early 2008.

While data was initially presented for download only, the system subsequently began to allow for specific queries. “Access to clean historical data is especially appealing to algorithmic trading venues as they are looking for ways to test and refine their trading strategies,” added Mr. Sandhu. “Once the query-based search is implemented, anyone will be able to spot check individual trades they executed, and compare the rate they got from their institution to that of the multi-source liquidity feed.”

Read this next

Retail FX

Malaysia regulator exposes OctaFX clone, shady FB profiles

Malaysia’s financial regulator today warned online investors about the risks of following investment tips made on social-media platforms.

Digital Assets

Crypto trading volume spikes at Swiss bourse amid FTX collapse

The shockwaves from the historic collapse of Sam Bankman-Fried’s crypto empire are still being felt across the industry, but some trading venues are actually doing better because of it.

Executive Moves

CMC Markets adds Camilla Boldracchi to institutional sales

UK’s biggest spread better, CMC Markets has promoted Camilla Boldracchi to take on an expanded role within its institutional sales desk.

Institutional FX

FXSpotStream reports $1.48 trillion in monthly volume for November

FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, reported its operational metrics for November 2022, which moved higher on a yearly basis but reflected weak performance across executed trade volumes when weighed against the figures of the prior month.

Retail FX

Interactive Brokers’ client activity drops 30% YoY

Interactive Brokers LLC (NASDAQ:IBKR) saw 1.95 million daily average revenue trades, or DARTS, in November 2022 compared to 1.96 million transactions in the prior month.

Digital Assets

The rise of Crypto ETPs in traditional exchanges as crypto winter deepens

Institutional investors are increasingly looking at traditional regulated exchanges as their first route into digital assets amid market turmoil caused by the crypto winter and the collapse of several big names within the space, including FTX. Acuiti and Eurex surveyed 191 buy and sell-side firms on their views of the digital assets markets in order […]

Digital Assets

TP ICAP’s crypto arm receives FCA’s go-ahead

UK interdealer broker TP ICAP has received a regulatory go-ahead to launch its cryptocurrency services in the UK. The bid shows that the recent collapse of FTX exchange has done little to damp the interest of big names in running their own crypto business.

Industry News

Coin Signals founder to pay $2,847,743 after prison sentence over crypto Ponzi scam

The U. S. District Court for the Southern District of New York has ordered Jeremy Spence, founder of Coin Signals, to pay $2,847,743 in restitution to victims of a fraudulent virtual currency scheme.

Digital Assets

CME Group goes DeFi: Reference rates and real-time indices of Aave, Curve, Synthetix

“These rates are designed to provide traders, institutions and other users transparency and price discovery across a much broader range of tokens, allowing them to confidently and more accurately value cryptocurrency sector specific portfolios and manage price risk around various blockchain-based projects.”

<