Effective Date 31 December 2020
Advanced Markets Limited has completed a comprehensive analysis of its trade execution venues and the quality of execution where client orders have been executed during 2020 based on transacted trading volume in each class of financial instrument that it offers. Below is a summary of the analysis and its conclusions.
Advanced Markets Limited facilitates true Direct Market Access to the Forex, Commodity and CFD markets. The firm takes no market risk and offers its wholesale services to Professional clients globally via its online trading platforms. Advanced Markets Limited acts as principal to client trades on a matched principal basis. Advanced Markets Limited accepts client’s orders as IOC, FOK, GTC or day orders. All client orders are instantaneously routed in a back-to back transaction directly to its bank, non-bank and ECN liquidity partners (as Limit IOC orders) for execution and the same orders are never filled until such times as a corresponding market trade execution has been confirmed.
The Execution Factors that are taken into account are:
• speed of execution;
• likelihood of execution and settlement (liquidity);
• size of order;
• nature of order;
• type and characteristics of the financial instrument;
• characteristics of the possible execution venues; and
• any other consideration relevant to executing the order.
While total consideration (price and costs) are generally the main factors for deciding the best possible result for most liquid investments, the overall value to of a particular transaction may be affected by the other factors listed above. We consider all factors when executing client orders and may decide that factors other than price and costs are more important in achieving the best possible result. The relative importance of each of the factors will depend on:
• client type;
• any special aims a client may have in relation to executing the order;
• the characteristics of client orders;
• the characteristics of the financial instruments the client orders relate to; and
• the characteristics of the venues (if there is more than one) to which client orders may be directed.
Advanced Markets Limited systematically monitors all aspects of its trade execution process in real-time, with particular focus given to the quality and performance of its liquidity partners. The firm realizes that, without reliable and sustainable sources of liquidity, its clients will not experience the optimal trading experience and “best execution”.
Advanced Markets Limited also reviewed client trade enquiries and feedback when compiling this analysis and noted no repeat instances of concern relating to the routing and execution of orders. This has also held true through periods of market dislocation and turbulence and the Company is confident that its clients have received fair and dependable trade execution at all times.
Given the firm’s fully STP business model, the speed of trade execution and system messaging is extremely important. Advanced Markets Limited extends significant technology resources to ensure that its trading platform is optimized in this regard and that message latency is nullified. In turn, the firm holds its institutional liquidity providers accountable for their performance and especially in regard to the speed of execution and acknowledgement of same. The top five venues summarized in this analysis have proven to be consistently among the best when it comes to all aspects of trade execution, from speed/acknowledgement right through to their fill ratios.
Advanced Markets Limited will remove any liquidity provider that does not meet its exacting standards especially where the LP’s complacency results in a noticeable drop in client fill rates. A constant dialog is maintained with each of our LPs to provide feedback on the pricing and to ensure that any issues are addressed immediately.
Advanced Markets Limited routes every client order directly to the market for execution and the trading platform system is configured to handle trades in Forex from as little as 1,000 to 100 million +. The Company leverages its extensive market relationships to develop specific trading environments where layers of liquidity are created to match the size of the order received. We take the view that every client should expect the same quality of execution and attention to detail regardless of the size of order placed. Obviously trade size will impact the available bid/ask spread based on the associated risk to the Liquidity Provider but there is no reason to expect a deterioration of how a specific trade is handled simply based on size.
Other Rationale and Information:
Advanced Markets Limited uses additional rationale to help determine which liquidity partners are providing the best possible all-round service. The system uptime and performance of an LP’s technology are an important factor and area where reliability is key to the provision of uninterrupted order execution for clients. Any provider exhibiting unreliable or unresponsive technology will be removed.
Price slippage is also monitored to ensure fairness (both positive and negative slippage) and to provide an early warning of a potential issue with latency in situations where an unusual number of trades are being slipped or rejected.
Advanced Markets Limited does not have any close links, conflicts of interest or common ownership with respect to any execution venues through which orders are executed. There are also no arrangements with any execution venues regarding payments made, discounts given, rebates or non-monetary benefits.
There have been no changes in execution venues during 2019 as a result of the monitoring and analysis of the execution factors.