Fair Trading Technology paving the way to a more transparent and secure FX trading environment that there was a great interest in what we were developing. The general consensus was that traders wanted the Metatrader platform, but like ourselves they wanted it to have a transparent connection to the ECN market. That’s why we decided to deliver all technology with transparency so that customers can verify all their transactions with their broker and know that our Metatrader solution is 100% clean from any manipulation or any other unethical behavior. Furthermore their were many other issues that needed to be solved with the Metatrader to work flawlessly with the ECN market.
Linking Metatrader 4 to an ECN trading environment is not a new idea. What issues have prevented a satisfactory solution to this business model from being achieved in the past? Tim Haman
e-Forex talks to Tim Haman, CEO and SvenErick Carlsson, Marketing Director, at Fair Trading Technology (FTT), about the launch of the firm’s new T3 Execution Bridge.
Tim, why did FTT set out to develop a 100% transparent MT4 to ECN trading solution? Fair Trading Technology originally set out to create a fair trading solution for ourselves. We wanted to be certain that our orders reached the market in a fair and open environment. Along the way we noticed 146 | october 2010
The most important issue that we have solved is what to do with partial fills. Metatrader cannot natively support partial fills and this results in trade rejects for the trader and loss of trading volume for the brokerage. In-turn this also increases the time it takes to execute a trade. As everyone knows time is money in this business and it can be the difference between a profit and loss. In our solution we have also enabled the Metatrader platform to access multiple levels of liquidity to fill an order. Previous bridges have typically only been able to access the top level to give traders the liquidity that they needed to make a trade. Again this used to result in order rejects which were neither good for the client or the liquidity provider.
behind. In order to become and remain an industry How does the T3 Execution Bridge work and what leader we must always work to better serve ourselves key features does it offer? and our clients. At first glance the T3 execution bridge looks like many other bridge solutions Speed is vital for many active traders. with it’s basic function of bridging What execution time-frames are you a FIX or Java interface with the looking to achieve? Metatrader server protocol to allow The typical speed for our bridge to straight through processing of trades. process a trade is less than 50 ms. Total However the most important feature with the T3 Execution time to process a trade is a little bridge is the transparent order longer as the clearing agent must reporting system which allows process the trade and return the the trader to verify all results to the bridge and then transactions in back to your laptop; which both accounts. on average takes With our about 240 ms intelligent depending order reporting where you are both systems located. Our can be viewed VPS hosting Trading with Fair Trading Technology side by side is located in in either an order based or position based view. This the same cloud as the trade servers which drastically means that your Metatrader trades can be viewed in a reduces the trade times for automated or EA traders. position based summary, which is the way most nonFor example: Metatrader brokerages use, or in a order based mode to duplicate the Metatraders order reporting system, which makes the Metatrader user feel right at home. • From Los Angels, CA, we can reduce the trade time by around 175 ms. What benefits does T3 technology bring to both brokers and traders? • From New York, NY, we can reduce the trade time by around 99 ms. Technological and IT structure benefits aside; our Technology is designed for traders who desire deep • From Singapore we can reduce the trade time transparency, ECN liquidity and fast execution time by 275 ms. while using their platform of choice. In addition the brokerage who adopts our solution gains the • From Kuala-Lumpor, Malaysia we can reduce advantage of taking on absolutely no risk as it only the trade time by 255 ms. allows straight through processing of trades. This ensures that the long-term business interests of broker • From Japan we can reduce the trade time by and trader are aligned. 285 ms.
In what ways does the T3 Execution Bridge differ from other common bridging products? The T3 bridge concept is adaptive and will always be under development to add features and to streamline it even further. Our development team is constantly at work to create an even better solution. Every millisecond counts to us because it counts to our clients. This bridge will continue to evolve because in business if you’re not adapting and evolving, you’re falling
FTT technology is delivered via a cloud computing framework. What advantages does this bring? Cloud computing is really about using resources in a more intelligent way. Instead of running our bridge on one server and then have the Metatrader server run on a separate server we operate both of them on a virtual server, this means that both programs are working inside the same server or CPU. Fair Trading Technology can therefore reduce all the transfer time october 2010
typically not allowed with most Metatrader setups and are limited by the proximity that stops and targets can be set. Our solution imposes no such limitations. If you want to take a quarter of a pip profit within the first second, then you’ll be able to do that with lightening fast execution.
What online trading tools and value added services are you currently developing to support the launch of T3? In development is a Measure of Confidence tool that will combine multiple signals and proprietary indicators to give traders a gauge of where the market is headed. In addition we are developing tools for traders to use to determine the best possible outcome of their trading history. Traders would simply load their HTML statement and our tool will determine the stops, targets and trailing stops that would have resulted in the best possible outcome for your trading style. We have much more in the development pipeline. To be kept abreast of their development and the development of other tools, please visit our website at www.fairtradingtech.com
“Cloud computing is really about using resources in a more intelligent way.” down to a couple of microseconds. A standard (standalone) server uses between 5-15% of its capacity during any given time in its life cycle. Within a cloud environment this can be raised to about 80%, which reduces the number of physical servers needed, which saves energy and cost. Since these processes take place inside the same CPU (microseconds instead of milliseconds) it also becomes easy to offload a server that might reach 80% capacity to another cloud server which can start sharing the burden, without the client even noticing. This in turn also improves uptime as the solution becomes more redundant in every aspect which is important when running a technical platform around the clock! These are just a few of many advantages that the cloud brings to the Fair Trading Technology client base.
Sven-Erick - what type of clients are likely to want to use FTT and how can they access the service? Our typical client is an individual who wants to utilize 148 | october 2010
the Metatrader trading platform with ECN liquidity. Transparency is key here as thus far in this industry transparency hasn’t gone this deep. This opens up the forex market to institutions and investors who require deep transparency to be able to participate in this market. In addition to this we believe that we will attract many who today may not participate in the forex market at all. As for accessing our services this of course depends on the partner. A trader can just visit our web page and click the demo button after which a automated process provides the necessary accounts and software required. As for a brokerage, bank or other institution a closer individual approach is often required.
Will you be offering support for automated FX trading and use of Expert Advisors? Absolutely! We welcome all types of automated systems employing any strategy. Scalping systems are
Sven-Erick Carlsson, Marketing Director
In regard to value added services our most exciting new venture is providing traders with highly accurate market forecasting tools. We are working with a phenomenal and unbelievably accurate group that provides market forecasts for all currency pairs so that traders can plan their trades accordingly. We want to give traders who utilize our solution every possible edge in the market. Because we are nothing without our clients success as ours lie in theirs and that we can continue to deliver state of the art solutions.
With the launch of the T3 Execution Bridge you hope to raise the bar in the Metatrader trading community for honesty, transparency and reliability. What impact do you think this technology might have on the way online FX trading evolves in the futures? We hope that we may help to push foreign exchange market standards. We believe that it’s in all parties mutual interests that the foreign exchange market remain as unregulated as possible and that the industry can develop naturally, as all evidence suggest it will. As for the impact that Fair Trading Technology will have, I personally believe that our technology will help build credibility and confidence between all parties concerned, no matter if they are a governmental institution/regulator, brokerage/ financial institution,large or small business or a private investor/trader. I personally believe that Fair Trading Technology’s solution might be a couple of steps in the right direction to help ensure that we have a fair market environment. october 2010
Tim Haman and Sven-Erik Carlsson from www.fairtradingtech.com talk to e-Forex Magazine about the launch of the T3 Execution bridge that is c...