Ok, so when prices rise at Deutsche's platform because they just executed a large buy order for a client, it immediately rises on neutral platforms like Reuters which display the banks best bid/ask and then the other banks adjust to that as well. I have a few more questions, though.
1) How do we get the new value at Deutsche after the large order has been executed? For example, at exchange-traded products, the offers are getting hit until the order has been executed and price moves up accordingly. Does it work the same way in FX? Basically, Deutsche offers liquidity through those offers and the client will get filled based on that? Once the order has been filled, we settle at the new value and then the other platforms adjust to the new price?
2) Are professional ECNs like FXall and Hotspot seen as a threat to the banks or are they perhaps participating too in there?
3) Is it possible that a large order being executed at small broker could have an impact on the whole FX market? I know it's not very realistic, but let's say a wealthy retail trader buys 50 million AUD/USD during a-not-so-liquid trading time through a retail broker, would this at the end have an impact on the whole market?
1) How do we get the new value at Deutsche after the large order has been executed? For example, at exchange-traded products, the offers are getting hit until the order has been executed and price moves up accordingly. Does it work the same way in FX? Basically, Deutsche offers liquidity through those offers and the client will get filled based on that? Once the order has been filled, we settle at the new value and then the other platforms adjust to the new price?
2) Are professional ECNs like FXall and Hotspot seen as a threat to the banks or are they perhaps participating too in there?
3) Is it possible that a large order being executed at small broker could have an impact on the whole FX market? I know it's not very realistic, but let's say a wealthy retail trader buys 50 million AUD/USD during a-not-so-liquid trading time through a retail broker, would this at the end have an impact on the whole market?