If you are an Institutional Trader, a Fund Manager, a Bank or, perhaps, a brokerage hedging positions, then you will almost certainly know that the job of executing a 20, 50 or 100 million trade can be a costly and frustrating experience if not done in the proper liquidity setting. Let’s begin by taking a look at the two most popular venues that clients in the non-bank environment would use to transact a large FX market order, the ECN platform or an individual Prime of Prime (PoP) To learn more, read this: https://blog.advancedmarketsfx.com/which-is-better-for-block-trading-an-ecn-or-a-true-prime-of-prime

1. ADVANCED MARKETS
PURIFYING INSTITUTIONAL
FX
Presenter:
Richard Perona
VP of Institutional FX
How does DoM affect your
transactional cost

2. COMPANY
• Prime of Prime solutions provider powering leading FX Brokers
• ASIC registered, 100% STP and transparent institutional
brokerage (ALSL 444649)
• Institutional shareholders include Macquarie Bank (ASX: MQG)
and GFI Group LLC a division of BGC Partners Inc. (NASDAQ:
BGCP)
• Primed by UBS AG
• Deep multibank liquidity
• Cutting-edge, low-latency technology
infrastructure

3. WHY ADVANCED MARKETS
• Enhanced safety of funds through Segregated Custodial
accounts at Macquarie Bank
• FX, Metals, Energy Commodities & CFDs at up to 100:1 leverage
• Multiple liquidity channels: MT4, Fortex Proprietary Desktop &
Web platforms, Fortex Web MT4
• Matching engine in Equinix NY4 datacenter
• Private cages in NY4 and HK3
• Sub-millisecond internal latency
• Cross-connects to major banks and ECNs

4. Via our institutional client base,
Advanced Markets liquidity serves
over and estimated 40,000
institutional and individual clients in
more than 30 countries.

5. BANK PARTNERS

6. PRIME BROKER

7. PRESENTED BY
With more than 17 years experience, Rich has been immersed
in the FX market with a broad history ranging from trading
desks at major world banks to managing flow at the retail
brokers. He has a deep understanding of the FX industry while
specializing in G20 & exotic currency trading. At Advanced
Markets, Rich assists financial institutions around the globe to
integrate FX as an asset class & identify applicate markets
along with technologies to suit their overall strategy.

8. TODAY’S AGENDA
• What is Depth of Market
• How to Read Depth of Market
• Order Types / Why the Matter
• Understanding VWAP
• Execution
• What is Block Trading / FOX
• Background of Block Trading
• How it Works
• Who will Benefit from Block Trading / FOX
• Case Study

9. WHAT IS DEPTH OF MARKET

10. HOW TO READ DEPTH
Screen shot of XAU/USD taken @ 10.35am EST 5/5/2017

11. WHY ORDER TYPES MATTER
1. Limit Orders
2. Market Orders
• Time in Force
• GTC
• FOK (Fill or Kill)
• IOC (Immediate or Cancel)
Screen shot of EUR/USD taken @ 10.45am EST 5/5/2017

12. WHAT IS VWAP
Screen shot of XAU/USD taken @ 10.35am EST 5/5/2017

13. VWAP EXECUTION
Example – Order to BUY 5 mio AUDSGD @ 1.03823
5 Legs VWAP execution price is 1.03821
1. 1,100,000 X 1.03823 = 1,142,053 SGD
2. 1,000,000 X 1.03816 = 1,038,160 SGD
3. 1,900,000 X 1.03826 = 1,972,694 SGD
4. 500,000 X 1.03820 = 519,100 SGD
5. 500,000 X 1.03817 = 519,085 SGD
Total = 5,191,092 SGD / 5,000,000 AUD = 1.03821

14. WHAT IS BLOCK TRADING / F.O.X

15. BACKGROUND OF BLOCK TRADING
• Cause market fluctuation
• Minimized adverse effects on the market price
• Used by institutional investors for large sums

16. F.O.X. TRADING

17. F.O.X. TRADING
Screen shot of EUR/USD taken @ 11.34am EST 5/25/2017

18. HOW TRADER BENEFITS
FOX
VWAP

19. CASE STUDY VWAP VS. FOX
• VWAP Market order SELL 10mio
• 10 legs to sweep
• At Mercy of the market movement
• FOX Market Order to SELL 10mio

20. QUESTIONS?

21. CONTACT US
rperona@amifx.com
Charlotte
11325 North Community House Rd.
Suite 425
Charlotte, NC 28277
Boston
20 Park Plaza, 4th Floor
Suites 412 & 414
Boston, MA 02116
International Phone:
+1-345-949-5555
Richard Perona
VP of Institutional FX