Execution Examples

As the GFXC continues its work to maintain the Code in the context of an evolving foreign exchange market, additional illustrative examples may be shared on the GFXC website in advance of being incorporated into the next version of the FX Global Code. ↩︎

Market Order: A request or communication from a counterparty to enter into an FX transaction with a Market Participant for the sale or purchase of an FX instrument at the current available level ↩︎

In a Give-Up Trade, one party executes an order but then “gives up” the transaction to be settled by another party, typically a prime broker. ↩︎

Last look is a trading practice where the liquidity provider (LP) provides a quote rather than a firm price into the trading system or execution venue ↩︎

DMA Algo: A particular type of execution algorithm. In fulfilling a Client’s DMA Algo, a Market Participant selects liquidity by looking across multiple sources, with the intention of delivering the highest possible execution quality available at that time to the Client. All liquidity obtained to fill the order is passed directly to the Client through Principal transactions between the Market Participant and Client. Where the Market Participant provides its own internal liquidity to the algo, it should compete on an equivalent and fair basis as the external liquidity sources, and it should be transparent about its dual roles as the algo provider and provider of liquidity ↩︎