IDB of the Year: Tradition

Despite sluggish market conditions, operating profit at the firm rose 31.1% in 2014 and 35.6% in H1 2015 as it continued to grow its market share and trading volumes.

Tradition is focused on three core strengths: price discovery and distribution, liquidity development and excellence of execution. It seeks to operate in a fair and transparent way in all of its business lines, whether in its pricing structure and impartial access to its Sef or the level playing-field concepts engendered by its spot FX platform, ParFX.

Dan Marcus, global head of strategy and business development at the firm, says: “We develop products based on a strong moral code, focused on innovation and in consultation with the market.

“We work with the industry to establish what they want and then work with them to develop solutions around that with honesty and integrity and with a keen understanding of regulatory reform requirements.”  

While some of its major rivals are seeking to change tack and focus on either voice or electronic brokerage, Tradition remains committed to the hybrid model.

“We are an independent global IDB in the market today focused on a screen-led hybrid future,” says Marcus. “We recognise the essential symbiosis between voice and electronic trading to enhance liquidity and provide the customer with flexible execution capability.” 

Developing products that reflect the firm’s belief in the hybrid model will be a key focus during 2016, Marcus adds. 

The firm has continued to grow its Trad-X platform, launched in 2011 in partnership with 13 of the world’s largest banks. During the judging period total volumes exceeded $1 trillion. 

Trad-X’s CCP switch service has also made great inroads, providing the market with a margin-efficient execution-level collateral management tool for counterparties to efficiently switch corresponding CCP positions. 

In spot foreign exchange, Tradition’s nascent trading platform, ParFX, went from strength to strength.

In line with its principle of encouraging trading transparency, the launch of ParFX Prime in September 2014 marked the first instance in spot FX where the executing broker, prime bank and prime client names were revealed post-trade.