Yield Profiles - STP/Brokered Flow Overview
STP flow contents
Brokered (STP) flow can be analysed from both the internal (client) side and the external (market) side. Both are viewed from the house perspective so will appear as a mirror image of each other.
The client side of STP flow allows you to see the rule that determined the STP execution decision of the flow whilst the external leg allows you to view which LP the flow was sent to.
Inbound client leg of the trade:
The party for the client leg will appear as the A Client book and is loaded by "Load client yield profiles". See Yield Profiles - Group by Internalised or Brokered to view brokered client trades:
Outbound market leg of the trade:
The party for the outbound leg will appear under the corresponding external washbook and is loaded by "Load external yield profiles":
Why analyse STP flow?
Analyse the yields of the flow you are externalising to LPs, this allows you to understand your trade execution and distribution:
- Are we passing out good PnL to LPs / is there opportunity to internalise more?
- Is too much toxic flow being sent to specific LPs? Are there any you need to protect?
- Which execution rules are managing the flow?
Back to Externalised Flow Overview
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