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FX liquidity aggregation for a fragmented market

Bart Joris
Bart Joris
Head of FX Sell-Side Trading Proposition Management, Refinitiv

In today’s highly fragmented FX market, how can Refinitiv FX Aggregator help sell-side traders to access FX liquidity, streamline workflows and save costs? Bart Joris, Head of FX Sell-Side Trading Proposition Management, explains.


  1. Aggregation services that employ algo execution can combine fragmented markets under a single lens and erase liquidity duplication, while enhancing efficiency and risk management.
  2. Refinitiv FX Aggregator enables sell-side traders to conduct high-quality FX trading by providing a single point of connectivity to different types of liquidity and high-performance execution management.
  3. In addition, the cost-efficient Refinitiv FX Aggregator enables users to access the right liquidity pools and is part of the broader suite of Refinitiv products that aid the workflow process.

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The global FX market is highly fragmented, with numerous different liquidity pools. Managing multiple connections to different FX liquidity pools is not only inefficient from the point of view of cost and complexity, but also gives traders a limited view of prices and of market depth.

In addition, the use of algos in FX trading is growing, and banks are investing heavily in the provision of ever more sophisticated algo offerings. According to the October 2020 Greenwich Associates report, Ad hoc responses to Covid shock will continue to shape FX market structure, 38 percent of investors say they plan to increase their use of algos as a result of their positive experience during the COVID-19 crisis.

Aggregation services which include algo execution are fast becoming a necessity, where an aggregator can bring a fragmented market under a single lens and remove duplication of liquidity, while also facilitating increased efficiency and better risk management.

Refinitiv’s ecosystem of FX trading solutions helps your business complete end-to-end workflows for trading forex

Client focus to aid FX trading

The new Refinitiv FX Aggregator is fully hosted and represents one of the most uncomplicated and cost-efficient ways for firms to enable high quality FX trading.

The service provides traders with a one point of connectivity to different types of liquidity, including CLOBs, relationship trading and exchange-based pricing. Connecting to multiple primary liquidity pools, including FXall, FX Matching and other ECNs, allows client access to high-quality venues, where they are able to both make and take liquidity.

Refinitiv FX Aggregator provides high-performance execution management and allows for the implementation of execution algos as well as venue-specific algos to maximise trade performance. It provides clients with genuine direct market access (DMA).

The service can also be used for hedging in a pre-defined, low-latency environment, giving traders control and transparency.

Attain the right FX liquidity

Refinitiv is committed to enabling its clients to access the right liquidity pools.

Based on a deep understanding of client needs, Refinitiv FX Aggregator connects to credible, best-of-breed sources of liquidity, rather than to numerous ECNs and resellers. Clients are able to access market-leading FX liquidity available on Refinitiv FX Matching and FXall, as well as other ECNs including Cboe FX and Euronext FX.

In addition, Refinitiv FX Aggregator provides connectivity to previously inaccessible markets such as B3 in Brazil and MOEX in Russia, thereby giving access to new pools of liquidity from local providers. This is particularly valuable for emerging market currencies and during times of market stress.

With plans to extend the offering to NDFs later in 2021, Refinitiv will further build on the quality and depth of available liquidity.

Workflow advantages

Refinitiv FX Aggregator is part of a suite of Refinitiv products designed to offer end-to-end workflow efficiency.

Any trades dealt using Refinitiv FX Aggregator automatically route to Refinitiv’s Trade Notification system. Straight Through Processing (STP) is supported for FX Matching, FXall or third-party venues.

Cost efficiencies

Refinitiv FX Aggregator provides all clients with access to broad and high-quality liquidity across spot FX, but also offers a low cost of ownership.

Regional and local banks are being driven by regulation to become more client-focused. These banks have neither the time nor the resources to invest in a trading infrastructure. Refinitiv FX Aggregator delivers a service which would be prohibitively expensive for many banks to build and maintain themselves. Since the service is fully-hosted, regional and local banks have the ability to compete at the same level as larger competitors, allowing both business and market growth.

Within global banks, business lines such as securities services or wealth management, which are driven by regulation and internal policy, can also benefit as they seek access to liquidity and quality execution. Refinitiv FX Aggregator allows these businesses to access the market directly.

Refinitiv FX Aggregator is not charged on a transaction fee basis, allowing for greater transparency.

Savings can be made by clients who pay a single screen fee, as opposed to fees paid to multiple venues. In addition, efficiency is improved and screen real estate maximised with Refinitiv FX Aggregator displaying liquidity on a single screen.

Technology to suit client needs

Refinitiv FX Aggregator is a fully hosted infrastructure, offered as a co-location service or as a cloud-based service, allowing clients increased flexibility.

Refinitiv’s ecosystem of FX trading solutions helps your business complete end-to-end workflows for trading forex


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