oneZero sweetens offering with insights into impact of ‘last look’ practice

abdelaziz Fathi

oneZero Financial Systems, a provider of brokerages and trading technology, has introduced a new analytics tool that provides a glimpse into the use of one of FX market’s most ‎common, and potentially abusive, practices.

The ‘last look’ allows market makers ‎get a final opportunity lasting a few milliseconds to reject an order after a client ‎commits to a trade at a quoted price. ‎

oneZero’s last look insights are available in its Data Source Insights product. In essence, it increases transparency for liquidity consumers on the other side of a trade who are now able to compare the reject rates at liquidity providers on a relative basis.

The data-driven approach calculates the estimated economic impact of trades rejected in a last look protocol, effectively creating a framework where sustainable relationships can be identified more easily. It helps users better understand the relationship between “the type of flow they send to LPs, quoted spreads and the impact of last look rejections when constructing their pricing and hedging functions,” the company said.

The level of FX counterparties using the ‘last look’ method has fallen since the introduction of the Global FX Code of Conduct. Most recently, the independent committee indicated that liquidity providers and platforms shouldn’t undertake any trading activity that uses information from a client’s trade request during the last look window.

oneZero’s intelligence solution creates reports and diagrams based on unique metrics and parameters. The standard package provides basic insights such as fill times at a liquidity provider based on a source of flow, size and/or currency pair. This data should be enough for the LP customers to estimate when and for how long the last look may be taking place.

Meanwhile, the advanced package takes a step further by enabling users to compare LPs with different last look approaches. The symmetry between hold times and reject rates helps clients in making their liquidity choices as they become aware of the impact of the last look rejection on trading costs, such as the spreads.

oneZero CEO and co-founder Andrew Ralich commented: “oneZero plays a critical role in the market as a counterparty-agnostic technology provider. Last look analytics will provide better information that will lead to more informed outcomes for our clients and the whole market. This is especially important at a time when the industry is focused on the development and fair and effective usage of the last look process.”

Just a few months ago, oneZero announced a series of fresh updates to its Liquidity Hub, which presented new features geared toward improving the capabilities offered by the platform to institutional and B2B clients.

In particular, oneZero rolled out new multi-asset capabilities to its product which provide a means for broker-dealers and market makers to optimize their liquidity and client pricing. The new upgrades improve the user experience and expand control functions for their clients operating in the institutional and retail FX, commodities and futures markets.

oneZero has already been highly active with multiple initiatives and several developments that have dominated headlines over the past few months.

Read this next

Digital Assets

Luxembourg’s regulator warns on false regulation of Crypto Capital Profits

The regulator of Luxembourg’s financial markets, the Commission de Surveillance du Secteur Financier (CSSF), has warned that a firm claiming to be authorized under the name Crypto Capital Profits is in fact not licensed to carry out business from within its jurisdiction.

Institutional FX

FINRA fines Wedbush $900K over reporting violations

The Financial Industry Regulatory Authority continues to take disciplinary actions against financial services firms for providing inaccurate securities trading information.

Digital Assets

Bitkub investigated by Thai regulator in ‘wash trading’ case

Thailand’s Securities and Exchange Commission has targeted Bitkub over allegations of inaccurate reporting and wash trading on its cryptocurrency platform.

Crypto Insider

Crypto.com secures approval to launch its services in France

Crypto.com has registered its cryptocurrency services with the dual regulatory structure in France, which includes the Autorité des Marchés Financiers (AMF) and the Autorité de Contrôle Prudentiel et de Résolution (ACPR).

Inside View

How to offer iOS compliant trading apps? Editorial by Chris Rowe

Webtraders are becoming increasingly important for FX and CFD brokers as more and more of their clients are trading using their mobiles. 

Institutional FX

SpiderRock deploys Eventus trade surveillance for futures and options offering

“As we have begun to provide direct market access as a routing broker and grown in our futures offering, which is subject to a different regulator, we wanted to make sure we chose a trade surveillance platform that has all the tools that we need, a format we can review easily, and capabilities to demonstrate to regulators that we have the proper trade surveillance procedures in place. Validus checks all the boxes for us.”

Industry News

Space and Time raises $20 million to grow its decentralized data warehouse

“We look forward to seeing the ways in which Space and Time will allow the business logic in centralized systems to be automated and connected directly to smart contracts.”

Digital Assets

Mastercard, hi app partner to issue cards with NFT avatars

In partnership with Mastercard, crypto and fiat financial app hi is launching what it calls “the world’s first debit card featuring NFT avatar customization.”

Digital Assets

Wirex to support government of Uzbekistan to adopt blockchain

“We’re excited to work alongside the Uzbekistan Direct Investment Fund in order to help the sector thrive, enrich the financial ecosystem there and set a benchmark for other countries, and ultimately expand.”

<