FX Execution Colour
NWM FX: How Can You Leverage NWM Client Liquidity?
2020-01-28T12:53:30

How Can You Leverage NWM Client Liquidity?

  

NWM’s Client Order Matching System (COMS) is your gateway into our no last-look client liquidity pool.

COMS allows orders to become part of our market-making price which is shown to our vast client franchise. If any of these clients “cross the spread”, the order takes precedence and is filled first, maximising spread capture and minimising market impact.  

  

COMS was created in 2013, what’s changed since then?

Significant quant resource and effort is continuously applied to optimise the COMS liquidity pool.

  

  • Monitoring the liquidity: Blending orders into the NWM price can impact our skew, therefore we are careful to only show this to “skew safe” clients. This is achieved by watermarking our market-making prices and monitoring market impact when showing skew to clients, to identify those who are recycling liquidity.
  • Tailored order execution: Depending on your preferences between speed of execution and market impact, you can now choose to execute against different subsets of COMS. This gives you more flexibility to dictate how your order is executed.

  

Why use COMS?

  • Match off against opposing client flow
  • Choose a pool that’s right for you
  • Limit where your interest is shown
  • Reduce market impact
  • No last-look liquidity
  • No HFTs

  

For any questions or queries please contact efxsales@natwestmarkets.com.

  

   


COMS Passive Volume

NWM has seen passive algo execution volumes increasing throughout 2019. 

  

Source: NatWest Markets

 









 

Peg Clipper EURUSD Mean Market Impact (YTD)

Minimal market impact can be seen by referencing all EURUSD passive algos during 2019 - we are achieving near inception mid out to 300 seconds whilst capturing spread.

  

Source: NatWest Markets

 

 

  






    

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This is Non-Independent Research, as defined by the Financial Conduct Authority. Not intended for Retail Client distribution. This material should be regarded as a marketing communication and may have been produced in conjunction with the NatWest Markets Plc trading desks that trade as principal in the instruments mentioned herein. All data is accurate as of the report date, unless otherwise specified. 

 

This communication has been prepared by NatWest Markets Plc, and should be regarded as a Marketing Communication, for which the relevant competent authority is the UK Financial Conduct Authority.

Please follow the link for the following information https://www.natwestmarkets.com/natwest-markets/regulation/mar-disclosures.html    

  • MAR Disclaimer
  • Conflicts of Interest statement
  • Glossary of definitions
  • Historic Trade ideas log

Where communicated in Singapore, this communication may be deemed an advertisement. This advertisement has not been reviewed by the Monetary Authority of Singapore.



Note that the text above is subject to the disclaimer(s) accessible if you Click Here
Authors
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Michael Kyriacou
eFX sales
London
+44 207 678 3962
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Ravin Amin
eFX Sales
London
+44 207 678 9422

Contributors
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Lucy Emptage



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