Siege launches anonymous session matching for early access to liquidity
“NetFix delivers innovation in Spot FX Fixing, allowing all participants to place orders on an anonymous basis, using different matching rounds before the publication of a Fix.”
FX Dark Pool provider Siege has launched , today announced the launch an anonymous mechanism designed to match offsetting fixing orders in advance of the publication of an FX benchmark.
The service goes by the name of NetFix and provides fully automated session matching for banks, asset managers, pension funds and corporates.
NetFix ensures earlier access to liquidity, zero information leakage, and reduced trading congestion within Fix calculation windows, according to the firm, who has also recently launched Siege MidPool, a fully anonymous continuous Spot matching service at a regulated mid-rate.
Orders are binding but fixing rate is unknown until publication of the Fix
NetFix ensures anonymity for participants who join the service and connect to a top tier prime broker bank, which acts as a central counterparty for each matched trade.
The matching service supports all currency pairs and offers the flexibility of a series of cascading matching rounds for each different fixing, operating at set times, through which offsetting orders are matched, the firm explained.
Siege added that although the fixing rate is unknown until publication of the Fix, orders filled in NetFix are binding.
Sang Lee, Head of Products and Strategy at Aite-Novarica, commented: ”In the past, fixing workflows resulted in information leakage, which often led to disproportionate market moves immediately before the publication of a Fix benchmark. By offering anonymous matching, participants benefit from getting their orders executed at a Fix price which hasn’t been adversely impacted by speculative traders acting on information leakage.”
Claude Goulet, CEO of Siege, said: “NetFix delivers innovation in Spot FX Fixing, allowing all participants to place orders on an anonymous basis, using different matching rounds before the publication of a Fix. Driven by the needs of our Working Group of banks and buy-side firms, we have launched a service which improves fixing workflows for all parties, cuts transaction costs and delivers high rates of automation using our robust and secure core matching engine and low latency messaging infrastructure.
“Our first service, Siege MidPool is already connected to more than 50 buy- and sell-side firms, and most of the major FX trading platforms, so we expect these participants to onboard to NetFix quickly.”