Trading

DMA

dma flow

Direct Market Access (DMA) 

A system of trading that allows buy-side firms to have easier access to liquidity. This, usually refers to electronic facilities often supplied by independent firms, allows buy side firms to access liquidity for securities they may wish to buy or sell.

Buy side firms are customers of sell side firms – brokerages and banks which may act as market makers in a security. Buy side firms will still use the trading infrastructure of sell side firms, but have more control over how the trade is executed.

Benefits of DMA include that less work is required to be done by the broker, and transaction costs (such as commissions) are lower for the firm. Direct market access allows buy side firms to often execute trades with lower costs

 

Foreign Exchange Direct Market Access

Foreign exchange direct market access (FX DMA) refers to electronic facilities that match foreign exchange orders from individual investors and buy-side firms with bank market maker prices. FX DMA infrastructures consist of a front-end, API or FIX trading interfaces that disseminate price and available quantity data from multiple bank contributors and enables buy-side traders, both institutions in the interbank market and individuals trading retail forex, to trade in a transparent, low latency environment

  

Other major criteria of FX DMA: 

  • provides to clients. Thus, the broker CANNOT profit from the trading losses of its clients. There is no trading conflict of interest between broker and trader.
  • Anonymous platforms ensure neutral prices reflecting global FX market conditions, not a dealer's knowledge or familiarity with a client's trading methods, strategies, tactics or current position(s).
  • Platform builds a fixed mark up into the client's dealing price and/or charge a commission.

 

No Dealing Desk

DMA is sometimes also referred to as No Dealing Desk (NDD). In NDD, we act as a price aggregator. We take the best available bid and best ask price from our liquidity providers, add a mark-up, and stream those prices to the platform we provide. That is the price you see. Our liquidity providers include global banks, financial institutions, and other market makers.

So, we do not take a market position, eliminating a major conflict of interest. Dealing Desk brokers may actively trade against your positions. They can profit when you lose. Alternatively, they may lose when you profit. Because of this, Dealing Desk brokers are incentivized to manipulate your orders. They may for example place restrictions on stops and limits.

The NDD execution model does none of this. Your orders automatically fill from the NDD price feed, which is the best available bid and best ask prices from all of our liquidity providers plus the mark-up. Additionally, client's orders are anonymous to the liquidity providers. They cannot see your stops, limits, or entry orders; they only see market orders coming from us

This is among the main reason why traders look for NDD brokers,

  • The transparency (means that a trader enters a true market instead of the market being artificially created for him),
  • Better & faster fills as a result of the direct and competitive market bids and offers and
  • Anonymity (means that there is no Dealing Desk watching who has come to the market and is asking for an order to be filled, instead client orders are executed automatically, immediately through the market network and totally anonymously)

 

Member of Jakarta Futures Exchange - No: SPPKB-003/BBJ/09/00
Member of Kliring Berjangka Indonesia - No: 005/AK-KJBK/XII/2000