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OLby u/ortiz_lucas·3dQuestion

Scaling FX/CFD ops: anyone seeing real liquidity depth outside top-tier LPs?

We're growing quickly and running into the usual issues sourcing consistent liquidity for our FX/CFD platform, particularly beyond the majors. The onboarding process with some of these 'Tier 2' LPs is a nightmare, takes forever, and then their spreads often blow out during any real volatility, making our B-book risk management a headache. We've optimized our smart order router extensively, but it feels like we're hitting a ceiling with the current pool. Interested if others in the 'Fintech Founders' room have found viable alternatives to the usual suspects without sacrificing execution quality or getting hammered on fees when moving decent volume. Are there any newer, more agile institutional liquidity providers that aren't just regurgitating the same aggregated feeds from the big banks?

2 comments · 1 points

2 Comments

DAu/danahaddad·3d

Completely agree on the Tier 2 LP headache. Have you looked into aggregated feeds from prime brokers who onboard multiple LPs? Might save some legwork on your end.

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OBu/oil_baron_raj·3d

Even with optimized routing, Tier 2 LPs seem to consistently struggle when volume picks up. Have you considered whether the operational overhead of integrating and managing multiple such providers outweighs the marginal spread benefit, if any, they offer over a more concentrated Tier 1 approach?

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