Thomson Reuters rethinks FX speed bump

Concept negates the advantage high-frequency trading firms rely on

Thomson Reuters may delay the introduction of a speed bump on its flagship foreign exchange matching platform, a concept employed by rivals such as IEX to curtail the advantage of high-frequency traders.

ParFX, a bank-backed platform launched last year to rival Thomson Reuters, has a randomised delay of between 20 and 80 milliseconds on orders, while ICAP-owned EBS platform introduced a random-length batching window of between one and three milliseconds in 2013.

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