neil
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More EFX info.
Here is a post from Justin on 11th Sept over at Forexfactory.com:
Seems chart package is being put together:
"This is Justin with EFX. I just wanted to give you an update on our platform with MT4. As many of you know, we have been looking into the MT4 software to link it to our 100% STP/ECN execution system. We were very excited about adding the functionality of MT4 as a front end to the back end that we already know works well. First, let me make a few points about our system, and then I will give an update on the MT4 situation.
Our system operates through the MBTF platform. This platform combines the direct access system of MBTF (commonly called STP or Straight Through Processing) with the ECN technology of TDFX. To be clear, MBTF (MB Trading Futures) is the FCM. Customers of this FCM can sign up via EFX (the arm that specializes in Forex only) or MB Trading (the arm that deals in all asset classes). If we pick up MT4, it will be through the EFX arm. Let me make some distinctions.
First, there are some posts on the various boards out there that suggest that minis cannot be traded through any non-deal desk platform because the banking system doesn’t allow for minis. Let me state very clearly: THIS IS NOT THE CASE. Our relationships with the banks (and they are numerous) that provide liquidity into our system are strong enough that those banks have broken up their electronic feeds to allow our customers to interact with their liquidity at any increment. And let me stress…this ultimately could mean micro-minis as well. If you think about how this works, it isn’t a big leap. If a bank is showing $100,000 of EURUSD at a price, previously, they required that this be purchased as one block of $100,000 because it kept the number of transactions down. However, once they realized that many smaller players could still add up to the same amount and that our system was providing that sort of volume for them, they simply allowed the transactions to be broken up into smaller increments. It has worked out well for them and for our traders. Remember that unlike futures, such as the ES/SP contracts, forex is not traded as a “contract.” The idea of mini versus full is in name only. You are transacting actual cash, so the only limitation is what the entities on both sides set as a minimum.
Second, it should also be clear that our ECN falls under a different name (TDFX), but it shares many of the same owners as MB Trading. In other words, the same people, and some more, were involved in the investment of starting the ECN technology. Let me give you an example. At this time, we use TDFX exclusively as our ECN. When you trade stocks, you open an account with someone like Cybertrader or MB Trading or E-Trade. When you buy or sell a stock, it is often routed to an ECN like ARCA or ISLD. In other words, an ECN is a technology company set up to put customer orders together. The same is true here. EFX/MBTF is the actual FCM. Order routing is handled by TDFX. It has the technology to pass your orders straight to a bank without deal desk intervention at ANY increment. It also has the core technology to allow our customer orders to interact directly. TDFX, the ECN, was set up to create that technology. So if the EURUSD is 1.2685 by 1.2686, and a customer of EFX/MBTF places an order to buy the EURUSD at 1.26841 (note the fifth decimal place for a tenth of a pip), since that order is not marketable at the time (the price of the EURUSD is higher), that order is routed to the TDFX ECN to sit on its server. If the EURUSD quote moves down to 1.2684 by 1.2685 on the EFX/MBTF system, that ECN quote at 1.26841 becomes the best bid. If another customer at that point chooses to sell the EURUSD at the market, their order is routed to the ECN and hits the buyer limited at 1.26841. Both customers get that price. The spread is irrelevant. No deal desk interaction occurs.
So that gives a good overview of the concepts of EFX/MBTF, the STP technology, and the ECN technology through TDFX. To put it in one sentence, “We are a true, non-dealing desk direct access platform that accepts any order size equally into our marketplace and incorporates true customer-versus-customer ECN technology down to the tenth of a pip via the TDFX ECN, which we currently use exclusively.” Whew! What a sentence.
Now, we are in discussions to implement MT4 with our technology, as many of you know. There are stumbling blocks and issues that are being discussed to see if they can be worked through. When we have a solid answer about this, I will post it here on this forum. Needless to say, we will only utilize a software solution that does not jeopardize our execution technology in a manner that would adversely affect our client’s fills and ability to get true market executions. If we can get the square to fit into the circle, so to speak, then we will offer MT4 as a front-end option for our customers as quickly as possible. If we cannot make that happen, we have other things in mind that we will announce at the appropriate time.
Sincerely,
Justin LeBlang"EFX Group: Source -
www.forexfactory.com/forexforum/showthread.php?t=8070&highlight=efx
( you may have to register and wait for 24 hours - but it's free)
Here is a post from Justin on 11th Sept over at Forexfactory.com:
Seems chart package is being put together:
"This is Justin with EFX. I just wanted to give you an update on our platform with MT4. As many of you know, we have been looking into the MT4 software to link it to our 100% STP/ECN execution system. We were very excited about adding the functionality of MT4 as a front end to the back end that we already know works well. First, let me make a few points about our system, and then I will give an update on the MT4 situation.
Our system operates through the MBTF platform. This platform combines the direct access system of MBTF (commonly called STP or Straight Through Processing) with the ECN technology of TDFX. To be clear, MBTF (MB Trading Futures) is the FCM. Customers of this FCM can sign up via EFX (the arm that specializes in Forex only) or MB Trading (the arm that deals in all asset classes). If we pick up MT4, it will be through the EFX arm. Let me make some distinctions.
First, there are some posts on the various boards out there that suggest that minis cannot be traded through any non-deal desk platform because the banking system doesn’t allow for minis. Let me state very clearly: THIS IS NOT THE CASE. Our relationships with the banks (and they are numerous) that provide liquidity into our system are strong enough that those banks have broken up their electronic feeds to allow our customers to interact with their liquidity at any increment. And let me stress…this ultimately could mean micro-minis as well. If you think about how this works, it isn’t a big leap. If a bank is showing $100,000 of EURUSD at a price, previously, they required that this be purchased as one block of $100,000 because it kept the number of transactions down. However, once they realized that many smaller players could still add up to the same amount and that our system was providing that sort of volume for them, they simply allowed the transactions to be broken up into smaller increments. It has worked out well for them and for our traders. Remember that unlike futures, such as the ES/SP contracts, forex is not traded as a “contract.” The idea of mini versus full is in name only. You are transacting actual cash, so the only limitation is what the entities on both sides set as a minimum.
Second, it should also be clear that our ECN falls under a different name (TDFX), but it shares many of the same owners as MB Trading. In other words, the same people, and some more, were involved in the investment of starting the ECN technology. Let me give you an example. At this time, we use TDFX exclusively as our ECN. When you trade stocks, you open an account with someone like Cybertrader or MB Trading or E-Trade. When you buy or sell a stock, it is often routed to an ECN like ARCA or ISLD. In other words, an ECN is a technology company set up to put customer orders together. The same is true here. EFX/MBTF is the actual FCM. Order routing is handled by TDFX. It has the technology to pass your orders straight to a bank without deal desk intervention at ANY increment. It also has the core technology to allow our customer orders to interact directly. TDFX, the ECN, was set up to create that technology. So if the EURUSD is 1.2685 by 1.2686, and a customer of EFX/MBTF places an order to buy the EURUSD at 1.26841 (note the fifth decimal place for a tenth of a pip), since that order is not marketable at the time (the price of the EURUSD is higher), that order is routed to the TDFX ECN to sit on its server. If the EURUSD quote moves down to 1.2684 by 1.2685 on the EFX/MBTF system, that ECN quote at 1.26841 becomes the best bid. If another customer at that point chooses to sell the EURUSD at the market, their order is routed to the ECN and hits the buyer limited at 1.26841. Both customers get that price. The spread is irrelevant. No deal desk interaction occurs.
So that gives a good overview of the concepts of EFX/MBTF, the STP technology, and the ECN technology through TDFX. To put it in one sentence, “We are a true, non-dealing desk direct access platform that accepts any order size equally into our marketplace and incorporates true customer-versus-customer ECN technology down to the tenth of a pip via the TDFX ECN, which we currently use exclusively.” Whew! What a sentence.
Now, we are in discussions to implement MT4 with our technology, as many of you know. There are stumbling blocks and issues that are being discussed to see if they can be worked through. When we have a solid answer about this, I will post it here on this forum. Needless to say, we will only utilize a software solution that does not jeopardize our execution technology in a manner that would adversely affect our client’s fills and ability to get true market executions. If we can get the square to fit into the circle, so to speak, then we will offer MT4 as a front-end option for our customers as quickly as possible. If we cannot make that happen, we have other things in mind that we will announce at the appropriate time.
Sincerely,
Justin LeBlang"EFX Group: Source -
www.forexfactory.com/forexforum/showthread.php?t=8070&highlight=efx
( you may have to register and wait for 24 hours - but it's free)
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