Scex,
With regards to transparency of an ECN. I am heistant to say that they offer a transparent market. In fact I am hesitant to say there is such a thing as transparency in an OTC market. How do you know that the ECN is giving you the best price they have or where that price is being derived? I think transparency in the currency market is neither here no there. What should matter whether your dealing with a dealing desk or an ECN is first of all execution and second price. I can offer you inverted spreads but if you can execute on those spreads it doesnt really mean anything. Therefore execution is always the end all be all. The only thing that should matter to any of us traders is do we get what we were told we were going to get when signing up. If a dealing desk offers you a 1 or 2 pip spread on majors and during most markets you get that 1 or 2 pip spread then you should be happy. However, if an ECN offers you the best from their liquidity providers and they dont beat what the dealing desk firms offers you then you shouldnt be happy. This is truly all I care about. I could care less if they are bucketing the trade, offsetting with liquidity providers or doing anything else. As long as I get the execution it doesnt matter to me.
With regards to transparency of an ECN. I am heistant to say that they offer a transparent market. In fact I am hesitant to say there is such a thing as transparency in an OTC market. How do you know that the ECN is giving you the best price they have or where that price is being derived? I think transparency in the currency market is neither here no there. What should matter whether your dealing with a dealing desk or an ECN is first of all execution and second price. I can offer you inverted spreads but if you can execute on those spreads it doesnt really mean anything. Therefore execution is always the end all be all. The only thing that should matter to any of us traders is do we get what we were told we were going to get when signing up. If a dealing desk offers you a 1 or 2 pip spread on majors and during most markets you get that 1 or 2 pip spread then you should be happy. However, if an ECN offers you the best from their liquidity providers and they dont beat what the dealing desk firms offers you then you shouldnt be happy. This is truly all I care about. I could care less if they are bucketing the trade, offsetting with liquidity providers or doing anything else. As long as I get the execution it doesnt matter to me.