Hello. Since you sir have a load of interbank dealing experience I request your insight. Supposing a high volume trader who puts on $500M positions on a daily basis on EUR/USD. What would be more advantageous for him?
1. A single top tier dealer for all your business. I have read that dealer relationships suffer when you shop around the street for the order. Any truth to this? Would'nt giving the whole order to a single dealer make you prone to front running. On the first 20M you buy the dealer knows you're gonna buy another 480 so he front runs you. How much of a factor would front running be in a single dealer situation.
2. 3 top tier dealers for the order. Each gets 150M more or less. Your order is smaller on an individual dealer's books. Less prone to front running. Possibly better pricing?
3. Is it generally better for you and the dealing relationship to rfq for the whole tranche or to scale in clips of 20M?
Btw I am referring to single dealer platforms not any ecns and all
Looking forward to your replies
Regards.
1. A single top tier dealer for all your business. I have read that dealer relationships suffer when you shop around the street for the order. Any truth to this? Would'nt giving the whole order to a single dealer make you prone to front running. On the first 20M you buy the dealer knows you're gonna buy another 480 so he front runs you. How much of a factor would front running be in a single dealer situation.
2. 3 top tier dealers for the order. Each gets 150M more or less. Your order is smaller on an individual dealer's books. Less prone to front running. Possibly better pricing?
3. Is it generally better for you and the dealing relationship to rfq for the whole tranche or to scale in clips of 20M?
Btw I am referring to single dealer platforms not any ecns and all
Looking forward to your replies
Regards.
