Providing an “Unbiased Best Execution” FX Benchmark Solution

M-DAQ’s patented VWAP-Stacked price sourcing algorithm eliminates any possibility of rates manipulation and front-running by individual banks, as it determines the equilibrium supply and demand prices in isolationfrom both parties, effectively decoupling how the rates are derived and how the positions are managed.

These prices are sourced from the core M-DAQ Securities Exchange Liquidity Pool where all FX Bank’s are streaming on a “no last look” basis – a very key consideration on the true best execution pricing.

Global FX Rate Fixing: Issues and Solutions


  • Current fixing platforms and processes (e.g. WM/R, ECBfix and all other single bank Fixing solution) under the spotlight from regulators globally on the basis of manipulation.

  • Key issues include client front running and outright rate manipulation of the Fixing process.

  • Issues are market wide and not restricted specific time zones or currencies.

  • Trust in existing processes eroded with regulators and the public, and banks under pressure to ensure integrity.

A Robust Fixing Solution

Necessary criteria for a robust fixing solution includes:

  • “Front running” and “Manipulation” Proof

  • Neutrality (conflict free)

  • Transparency and Auditability

  • Depth of market (i.e. reflect supply and demand forces of the broad market)

  • Breadth of market (i.e. cover sufficient number of ccy’s)

Providing a Universal Benchmark Rate

Fixing platform leverages off existing M-DAQ infrastructure and IP to provide fixing prices that are competitive, neutral, transparent, manipulation proof and executable.

Our FX prices are derived from the world’s Top 10 FX Banks accounting for nearly 80% of the global FX liquidity around the clock.

This new “Effective Supply Pricing” is superior to traditional “last executed pricing”; with consistent market depth in excess of USD250 million at all times.

Benchmark Rate Analytics

Retains a perpetual audit trail of each benchmark rate and its construction to faciltate proactive analysis and ensure integrity

Pricing Competitiveness

Pricing competitiveness is enhanced by book-building via price slicing from the stacked/ladder price streams of individual banks (similar to an equity order book where orders are on a price, time basis)

FX Hedging

In addition to providing a universal benchmark rate, the same platform also supports actual execution for FX hedging purposes via an Auction Model, both at the hourly benchmarks and on a continuous basis


Flexibility in selection of Fix execution available. Internal equilibrium crossing, traditional auction (English, Dutch) or reverse auction, or a combination

Fixing Benchmark Initiative

  • Current fixing platforms and processes (e.g. WM/R, ECBfix and all other single bank Fixing solution) under the spotlight from regulators globally on the basis of manipulation.

  • Mid and Lower-tier Buysides are paying spreads above mid-rates or not using an FX Benchmark at all.

  • Lack of sufficient automation/STP or faces with disparate systems/ channels to efficiently cover passive FX positions.

  • FX Banks are not making any profits on benchmark trades dealt at mid-rates, and in fact incurs transaction costs.

  • FX Banks would gain a new customer segment which is currently widely dispersed (i.e. multitude of FX Banks).

  • Apart from single bank proprietary offering, most other venues offer relatively little deep STP for Sellsides.

  • Buysides continue to benefit from mid-rate benchmarking (or near mid-rates) but Sellsides can offload their excess positions at Bid-to-Mid rather than at Offer.

  • Creates a venue for Best Execution, Efficient Price Discovery and Position Allocation, reduces transaction costs for Buyside and increases revenue for Sellside.

  • Creates end-to-end STP for both Buyside and Sellside, further allowing for netting/consolidation of flows at Buyside Group-level.