Overview

Hotspot brings the powerful benefits of an independent, transparent ECN marketplace structure to institutional foreign exchange trading. These benefits include full depth-of-book view, centralized price discovery, direct and anonymous market access, streaming quotes from a diverse set of market participants and robust real-time pricing, benchmark, and reference data. Hotspot's ECN model provides full market transparency and greater control of the trading process, enabling better trade execution and lower transaction costs.

On February 28, 2017, Bats Global Markets, including Hotspot, was acquired by CBOE Holdings, Inc. To learn more about this acquisition, click here.


Hotspot Innovations

Anonymous Cash FX Trading

Anonymity ameliorates market impact concerns for high-profile traders and for those building large positions. Moreover, for all market participants, trading anonymity ensures neutral prices, eliminating concerns that clients' trading intentions will be read or their trading activity tracked.

Centralized Cash FX Marketplace

The Hotspot marketplace was the first transparent, open FX trading structure to provide institutional clients with a real-time view of the spot FX market, including all bid/offer prices (not limited to top of book), the quantities available at each price level and the number of participants comprising the quantity at each price level. Hotspot's centralized price discovery has grown more robust over time as the platform has added increasingly diverse sources of liquidity.

FX Prime Broker Credit Model

Hotspot introduced the FX prime broker credit model to multibank platforms. This structure enables clients to interact with liquidity in the marketplace anonymously, with the credit of their clearing bank or prime broker. Hotspot is independent and never trades in any capacity on its platform.

Hotspot's fully interlinked clearing bank and prime broker network benefits bank market makers by preventing intra-platform arbitrage, which takes place on other multibank ECN systems to the detriment of system-wide liquidity.

TradeView FX℠

TradeView FX enables market participants to see FX market depth in their preferred trading quantities. It displays the weighted average prices for client-specified quantities as opposed to amounts that are available at given prices in the standard Hotspot ECN and on other platforms. Moreover, TradeView deploys a special execution algorithm and related functionality that ensures orders are executed at the displayed price or better, effectively allowing you to manage, and minimize, slippage when sending "at best" orders for large amounts.