"THE MARKET... consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Alexander Elder


Saturday, October 11, 2008

FXMarketSpace is toast


Transparency, who needs it? The death of an idea.
“Centralized counterparty clearing was not compelling..."

see: Securitiesindustry
see: April, 2008 NewSpace (PDF)



(formerly) Available in 32 countries, FXMarketSpace’s participating prime brokers and CME Clearing customers include(d) ABN Amro, American International Group, Bank of America, Barclays Capital, Calyon Financial, Citigroup, Credit Suisse, Deutsche Bank, JP Morgan Chase, Penson GHCO, Prudential Financial, Rand Financial Services, Royal Bank of Scotland and UBS.

FXMarketSpace
(attempted to provide)
Broad access – enabled by CME Group’s Globex®
API, over 100,000 Reuters FX desktops and a
growing list of Independent Software Vendors
Total transparency –where all prices are available
to all participants and five levels of market depth
are displayed
Trading anonymity – through a central counterparty
model that enables all customers to buy and sell
without having their name disclosed
Robust, scalable technology – that supports
minimum latency and maximum order throughput
Efficient settlement services – that minimise
settlement and replacement risk and reduce costs

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eXTReMe Tracker

What is a Bucket Shop?

"Bucket Shop is a specifically defined term under the criminal law of many states in the United States which make it a crime to operate a bucket shop. [2] Typically the criminal law definition refers to an operation in which the customer is sold what is supposed to be a derivative interest in a security or commodity future, but there is no transaction made on any exchange. The transaction goes 'in the bucket' and is never executed. Without an actual underlying transaction, the customer is betting against the bucket shop operator, not participating in the market."
see: Wikipedia

The SEC believes that "internalization" is somehow different, and this affects ALL of your online trading, no matter what you are trading. Trades that are executed outside of the exchange, never reaching the main market, effectively hide data from technical analysis, and skew pricing.
see: Not a bucket?


"... internalization hurts retail customers and market quality"

see: EconPapers

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