Liquidity Provider

Designing services for institutional clients stands as a primary focus of xChief’s development. With this in mind, xChief leverages its extensive experience with various liquidity providers to develop its own stream aggregation architecture. This innovation significantly reduces spread sizes, slippage, and the percentage of rejected orders. Consequently, these technological solutions enable xChief to function as a liquidity provider for any Forex broker seeking stable quote streams and high-quality order execution.

When analyzing the institutional segment of Forex services, it becomes apparent that the traditional dealer business model, where the broker acts as the "second party" in transactions, is an insufficient model of operation due to its subpar client order execution. Consequently, Forex brokers seek alternative solutions based on STP (Straight Through Processing) technology. This approach operates on a Non Dealing Desk mode, removing dealers, whether they are company employees or bots operating on the Forex broker's server. It is essential to note that STP serves as a guiding principle for constructing a business model focused on "instant" order coverage, skipping the prior processing of orders. In this context, the liquidity provider, aggregation server, or ECN platform typically serves as the order's final destination.

Considering the expense, complexity, and time required for developing a proprietary technical solution, it's evident that such investments are impractical for fledgling companies. Consequently, xChief offers a pre-built solution to Forex brokers. This solution not only ensures access to high-quality quote streams but also automates the hedging of client positions.