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.
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 FXsm
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.
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