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Liquidity aggregation for the best order execution
Control your positions, automate the process, and provide clients with the best pricing
Liquidity aggregation with TFB
Liquidity aggregation can be an overwhelming task, balancing between providing the best short-term and long-term offers for traders. There is no single definition for what that best offer is, and the best offer is available in most liquidity bridges on the market, one way or the other. What differentiates TFB is that we have created 6 different modes of aggregationto help our partners find the best fit for and provide a custom service to their clients regardless of their needs.
All these aggregation modes are available within the multiplatform Trade Processor liquidity bridge that provides secure and fast execution and aggregation, offers a straightforward interface, and many extra tools, such as automated volume consolidation, that bring order processing to a whole new level. All that helps you get the best pricing from the 100+ trusted Liquidity Provider partners available via our liquidity bridge.
Key features and benefits of liquidity aggregation with TFB
Ability to set up multiple private pools
Smart aggregation with flexible settings
Fast and secure aggregation to meet ever-rising trading demands
Six aggregation modes to find the best pricing for every order
Full transparency of the aggregation process
Access to 100+ Liquidity Providers through the Trade Processor liquidity bridge
Ability to set up multiple private pools
Ability to set up multiple private pools
Fast and secure aggregation to meet ever-rising trading demands
Six aggregation modes to find the best pricing for every order
Access to 100+ Liquidity Providers through the Trade Processor liquidity bridge
Full transparency of the aggregation process
Execution models with the TFB liquidity aggregation platform
The secret to powerful liquidity aggregation is having options. With TFB, you don’t have to limit yourself. Choose from one of the supported models to achieve the best results for yourself and your clients.
Straight Through Processing (STP)
Send orders straight to external execution, avoiding re-quotes and smaller spreads.
Electronic Communication Network (ECN)
Pair client orders together to achieve the best pricing for them.
ECN/STP
Combine the two methods for the best aggregation and execution results.
Sandbox environment
With TFB liquidity aggregation, you can create test environments for proof of concepts or to optimise the trading process during high-risk market periods to protect trader funds.
The 6 market liquidity aggregation types offered by TFB
Each of the 6 liquidity aggregation types targets the main aggregation issues – over-exposure and discrepancies. On top of that, they each help get the best pricing for different trading scenarios.
Execute orders with a single LP
Execute orders across multiple Liquidity Providers by the top of the book
Execute orders with the LP where it was initially placed
Close orders while lowering the net position with an LP
Execute orders by distributing them between LPs proportionally
Execute orders proportionally, but always close positions at the same LP where it was opened
With 6 different liquidity aggregation options, brokers, hedge funds, and prop traders can get the best execution conditions, minimising their exposure and swaps at the same time.
Risk management with the TFB liquidity aggregation platform
Liquidity aggregation is an important asset in the risk management strategy of a brokerage or hedge fund.
Reduce the risk of dissatisfactory pricing when trading with 6 liquidity aggregation modes.
Create private aggregation pools and choose from 100+ LPs to work with liquidity providers that you trust and avoid quote latency.
Filter quotes thoughtfully with the TFB liquidity bridge to avoid spikes and gaps.
Control spreads by configuring the minimum and maximum thresholds in the Trade Processor to adjust the spreads dynamically and keep them within predefined limits.
More features to level up liquidity aggregation and execution
Continuous execution
The tool is designed to process large-volume orders with more favourable pricing. Instead of executing the entire order at once, the platform breaks it down into smaller parts and executes them over time to ensure each element of the larger order is processed with the best pricing. Once all parts of the order are executed, they’re merged back together, and the Volume-Weighted Average Price (VWAP) is calculated.
Volume consolidation
Volume consolidation is designed to make trading less risky and more efficient. The feature automatically consolidates all open positions across all liquidity providers at the end of the day. With that, brokers ensure they are protected against out-of-control swap costs and exposure, saving hours of manual work every week and preventing human errors.
Volume transfer
The volume transfer functionality enables brokers to easily move volumes from one LP to another. This helps balance exposure, but also change a Liquidity Provider if you want to work with a new partner.
Auto switch
Auto switch automates the dealing process and switches trades automatically based on predefined triggers. With the feature, brokers can create rules that will launch the switch, such as when an account’s PnL reaches a certain percentage of the trader’s balance, and they can set up rules to return to the original position based on predefined triggers, too.
Who is liquidity aggregation by TFB for?
Retail brokers
Forex brokers
Prime brokers
Hedge Funds
Prop trading firms
Liquidity aggregation FAQ
Why is liquidity aggregation important?
Liquidity aggregation is vital in the trading process and the financial market overall. It helps brokers expand their operations, stay competitive in the market, and retain clients focused on expanding their asset portfolio and making the most profit possible, not necessarily sticking with the same brokerage out of pure loyalty.
A lot depends on how liquidity aggregation is arranged – getting the best pricing for the client, ensuring the execution is fast and safe, reducing slippages, and keeping the trading process uninterrupted.
What types of assets can be aggregated with Tools for Brokers?
Currently, we support the following asset classes: Forex, CFD, and Futures. We’re always working on expanding and enhancing the functionality of the product portfolio for our clients, so stay tuned for more announcements on asset class support.
What are aggregation pools?
Aggregation pools are part of the execution chain. They are groups of liquidity providers that you combine based on your current preferences and business model. The aggregation pool defines what liquidity the order is sent to, how the volume can be spread across multiple liquidities, and how the execution results are processed among different liquidity providers in the pool. In the Trade Processor liquidity bridge, you will find a separate aggregation pools tab where you can merge and combine different LPs into aggregation pools.
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