Tools for Brokers, one of the largest providers of a variety of tools for FX brokers, has upgraded its liquidity bridge and has been pushing hard on the use cases for the same and highlighting it to its clients.
The company already had a liquidity bridge along with the other tools but of late, it has been promoting its liquidity bridge prolifically as it is one of the most important components for any broker, especially the larger ones. The bridge sits between the trading platform and the liquidity provider and passes the trade from the platform for clearing to the provider. Depending on the clearance made at the liquidity provider side, the bridge reports back the same to the trading platform. This is a key functionality as any failure in this part could lead to large losses for the broker which is why the FX brokers generally go for tried and tested solutions as far as bridge is concerned. There is any kind of combinations and situations that are possible to fail and all these needs to be properly handled by the bridge to ensure smooth and reliable operations for the broker.
One of the primary functions of the bridge, which determines how good it is, depends on the way it handles large orders and its scalability. The bridge provided by T4B breaks down the large orders into smaller ones and ensures that they are cleared neatly and quickly. The bridge can also be plugged into a variety of liquidity providers who have a FIX connection and this helps further as multiple providers can be integrated by the brokers, especially the larger ones, to ensure that the orders are split and passed to the providers quickly and also to ensure clearing of the trades in a manner so that the slippage is kept to the minimum.
The bridge also has reporting functions which are expected to make the job of the broker easier as reporting and reconciling generally involves a lot of manual work which consumes a lot of time. It would be very useful for brokers to have proper reporting and monitoring tools which would save them a lot of time and work in the long run.