Hotspot FXi, a leading streaming, multibank spot FX platform, brings the powerful benefits of an independent, transparent ECN marketplace structure to institutional foreign exchange trading. These benefits include full depth-of-market view, centralized price discovery, direct, anonymous market access and robust real-time pricing, benchmark, and reference data. Hotspot FXi’s ECN model provides full market transparency and greater control of the trading process, enabling better trade execution.
The FX ECN trading interface displays full depth-of-book with live prices and associated quantities as well as the number of participant banks and clients who comprise the bid and offer quantity at each price level. This live display provides benefits to traders over the prevalent best bid/offer display found on most FX platforms. TradeViewsm enables clients to view the market by their preferred dealing quantities and trade using an algorithm that ensures execution at the displayed weighted average price or better. Access is available via Gui/API or Fix.
Hotspot FXi Software
Anonymous Cash FX Trading
Hotspot FXi innovated anonymous spot FX trading for institutional market participants. Comprehensive anonymity is a core offering of Hotspot FXi.
Anonymity ameliorates market impact concerns when building large positions or for high-profile market participants. Moreover, for all market participants, anonymity ensures neutral prices, eliminating concerns that for clients trading intentions to be read or their trading activity to be tracked.
On Hotspot FXi, a client’s identity is never revealed except to its designated FX prime broker (or prime brokers). The system does not embed client identifiers in trade messages to counterparties, clients are not identified post-trade, and the system does not offer price makers a “last look” before honoring a trade.
Centralized Cash FX Marketplace
The Hotspot FXi marketplace was the first transparent, open FX trading structure to provide institutional clients with a real-time view of the spot FX market, including all bid/offer prices (not limited to best bid/offer only), the quantities available at each price level and the number of participants comprising the quantity at each price level.
As the marketplace evolved, adding additional bank market makers, new price making functionality and significant flows of client-supplied liquidity from the world’s leading hedge funds, CTAs, asset managers, corporate treasuries, black box proprietary traders, and arbitrageurs, make our centralized price discovery even more robust.
Executable Streaming Prices
Hotspot FXi introduced to institutional market participants executable streaming, multibank prices on which clients could trade instantaneously and anonymously. We’ve continued to improve the quality of our price stream enhancing our technology and adding market maker banks.
Beginning in late 2004, the Hotspot FXi marketplace began seeing significant executable price streams from clients. This liquidity source, totaling several billion dollars daily, combined with the platform’s powerful bank streams, makes Hotspot FXi a leading venue for executable streaming prices.
FX Prime Broker Credit Model
Hotspot FXi introduced the FX prime broker credit model to multibank platforms. This structure has been widely emulated, but never fully reproduced. The structure enables clients to trade anonymously in the Hotspot FXi marketplace and to deal on all prices in the marketplace, whether from market maker banks or clients, with the credit of their clearing bank or prime broker. Hotspot FXi never acts as principal to a trade.
Hotspot FXi’s fully interlinked PFI network provides benefits to bank market makers because it prevents intra-platform arbitrage, which takes place on other multibank ECN systems to the detriment of system-wide liquidity.
PiPsm Precision Improved Pricing
Hotspot FXi introduced half-pip pricing to its platform in 2005 and one-tenth pip pricing in 2007. Hotspot FXi PiP enables clients to fine-tune their passive bidding/offering strategies and banks to optimize their market making algorithms.
TradeView FX enables market participants to see FX market depth in their preferred dealing quantities. It displays the weighted average prices for client-specified quantities as opposed to amounts that are available at given prices in the standard Hotspot FXi ECN and on other platforms. Moreover, TradeView deploys a special execution algorithm and related functionality that ensures orders are executed at the displayed price or better, effectively allowing you to manage, and minimize, slippage when sending “at best” orders for large amounts.