Thomson Reuters to Champion Higher Industry Standards for FX Trading
Proposed changes to Spot Matching Trading Rules to encourage behaviours that sustain primary markets
LONDON, NEW YORK, 25 March 2014 – Thomson Reuters today announced the publication of a new proposed Matching Rule Book, applicable to the entire Thomson
Reuters Matching community and designed to reflect a higher standard for acceptable trading behaviours in foreign
exchange.
Developed in consultation with market participants over the last 12 months, and in response to detailed analysis of
trading activity on Thomson Reuters Matching platform, the new updated Rule Book is intended to encourage behaviours
that sustain primary markets. These include encouraging genuine interest at top of book, maintaining high certainty of
execution and providing a fair and orderly trading experience for all market participants. Similarly, by raising the bar
on expected trading behaviour the rules aim to discourage abuse, manipulation or disorderly conduct, as well as
behaviours that do not enhance liquidity for the market as a whole.
“As an FCA-regulated trading venue, Thomson Reuters has a responsibility to guard that the trading behaviours and
practices on its Matching platform comply with the Market Conduct rules that govern MTFs,” said Phil Weisberg, global
head of FX, Thomson Reuters. “Through a combination of platform controls and behavioural rules, the new updated Rule
Book will seek to enhance liquidity for all clients trading on Thomson Reuters Matching. The proposed rules are based on
feedback from detailed consultations with the market through the past year.”
Thomson Reuters Matching includes platform controls that can influence trading behaviour, including Minimum Quote Life
that ensures longevity of orders in the book and gives counterparties a fair chance of trading those orders, and Minimum
Tick Size that helps achieve the right balance between tight spreads and stability of prices. The changes also introduce
a proposed randomisation of order processing pilot, to be run in a selected currency pair, to randomise execution and
further facilitate a more equitable trading environment.
Additionally, Thomson Reuters is proposing a tightly defined set of trading rules that are intended to reduce the use of
trading techniques that may lead to violations of Market Conduct Rules and are intended to foster genuine interest to
trade and high certainty of execution.
By issuing new rules, Thomson Reuters proposes a proactive, transparent and consistent approach to enforcement,
including surveillance and reporting of client trading activity, client notification of activity that unless modified
could lead to a breach of the rules and sanctions based on penalties other than the application of fines or removal of
firms from the platform.
“We take our responsibility to maintain a fair and orderly trading experience for all Spot Matching market participants
very seriously and are adopting a leadership position in defining a higher standard for acceptable trading behaviours in
FX,” continued Weisberg. “These proposed changes will benefit our customers by not only providing transparency in
acceptable trading behaviours, but also transparency in the intentions behind our Rule Book changes.”
With over 1,100 subscriber organizations, Thomson Reuters Matching is the leading anonymous electronic trade matching
system for the professional community offering unbiased access to real time executable prices on 54 spot currency pairs.