Siege, the capital markets fintech and FX dark pool provider, has launched NetFix, a new service designed to improve workflows and reduce transaction costs around FX fixing times.
By providing fully automated and anonymous matching, the new service aims to benefit buy-side and sell-side firms by providing earlier access to liquidity, zero information leakage and reduced trading congestion within the Fix calculation windows.
NetFix works by running a series of cascading matching rounds at set times before each different fixing (e.g. the WMR 4pm Fix), through which offsetting orders are anonymously matched against a central counterparty. Although the fixing rate is not known to participants until the publication of the Fix, NetFix orders are binding.
“NetFix delivers innovation in Spot FX Fixing, allowing all participants to place orders on an anonymous basis, using different matching rounds before the publication of a Fix,” says Claude Goulet, CEO of Siege. “Driven by the needs of our Working Group of banks and buy-side firms, we have launched a service which improves fixing workflows for all parties, cuts transaction costs and delivers high rates of automation using our robust and secure core matching engine and low latency messaging infrastructure.”
“Our first service, Siege MidPool is already connected to more than 50 buy- and sell-side firms, and most of the major FX trading platforms, so we expect these participants to onboard to NetFix quickly,” he adds.
The central counterparty against which all trades are anonymously matched is a ‘top tier prime broker bank’, according to the company.
The first successful Spot trades were completed on NetFix among a group of early participants on 26th July 2022 at the WMR 4pm Fix. In addition to NetFix, Siege has been in production with Siege MidPool since February 2021, a fully anonymous continuous Spot matching service at a regulated mid-rate.
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