Continuity Pool
Continuity pools are an optional pool override used as a failover in the case that the main pricing source is currently unavailable. This uses a higher diversification of LPs to construct a rate designed for higher availability during less liquid periods.
There seems to be a divide between LPs. Those that are:
- Informational, but only occasional pricers: LPs such as XTX, JP, UBS etc. have predictive, good rates however it isn't uncommon that they choose not to participate in market events via wide pricing, dropping pricing, withdrawing depth etc.
- Non-predictive, but higher availability: ADS, SCOPE, IG, INVAST, FXCM etc. These LPs face off against retail crowds that prioritise continuity of pricing vs performance.
Typically we base our pricing around the type 1 LPs, however this can result in us losing our ability to internalise, if these LPs become unavailable (e.g. around roll, or a volatile news event).
The Continuity Pool is designed to provide higher availability pricing, by building a Liquidity Pool solely from these type 2 LPs.
Avoid Single Point of Failures
We assess the continuity of rate provision from your current LP connections and categorise them into these 2 types to create a continuous, marked up rate used as a failsafe in the event that your primary feed loses all underlying LP prices.
In cases where the normal Internalisation Price is unavailable, the Internalisation Price will be replaced by the Continuity Pool. This is the price that will be published and used for Internal execution only when the primary source drops, providing us with a high availability backup price source.
The pool selected for continuity will NOT have brokering functionality, therefore in a pure STP/A-Book setup where the broker pool is the primary price source as below, orders will not be sent to the continuity pool and will instead cancel.
This pool is always available for brokering, alongside the standard "Broker Pool".
The Continuity Pool has its own markup controls, and is typically run with a significant markup, to account for the loss of predictiveness that comes from relying on these type 2 LPs.
Continuity Pools are constructed in the same way a Liquidity Pool is, click here to learn about how to create a Liquidity or Continuity Pool