GAIN Capital’s GTX updates rules of engagement for liquidity providers 

New rules designed to increase quality of execution

GAIN Capital Holdings, Inc. (NYSE: GCAP), a global provider of online trading services, announced today that it is updating the rules of engagement for liquidity providers on GTX, its institutional electronic communication network (ECN).

“Refining the rules of engagement of our liquidity provision will deliver a superior trading experience to our customers,” said Steve Reilly, Head of Liquidity at GTX. “These measures will improve the response time and fill ratios for our clients while reducing trade rejections.”

The new rules focus on market makers who provide Reviewable Liquidity, defined as orders and quotes submitted to the GTX venue which must be accepted or declined prior to execution. These rules include:

250 millisecond response times: market makers are required to accept or decline incoming orders within 250 milliseconds, instead of the previous 500 milliseconds
80% to 85% Targeted Acceptance Rates: market makers are expected to adhere to an acceptance rate of no less than 80%-85% of the orders
Minimum quote sizes of $1 million: market makers must quote a minimum size of one million of base currency to assure a level playing field
Minimum average daily volume of $200 million: a market maker must maintain average daily volume (ADV) of $200 million or more, aggregated across all price feeds (including firm liquidity)

“The market has recognized our unique value proposition, which has resulted in strong volume growth for GTX,” said John Miesner, Global Head of Sales at GTX. “This unique value proposition includes a commitment to delivering the highest standards of liquidity provision and execution, transparency around the rules of engagement and access to an increasing diverse range of participants through our prime of prime services.”

GTX’s ECN volume increased 36% in the first half of 2015 compared to the prior year period.

Source: GAIN Capital – GAIN Capital’s GTX updates rules of engagement for liquidity providers

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