About
Siege develops technology designed to make FX execution more efficient. From anonymous mid-matching to pre-trade optimisation, our services enable participants to access liquidity, reduce market impact and manage risk effectively throughout the FX trading process.
The Cost of Moving Risk
Large FX orders can create costs beyond the execution price itself. A simple way of illustrating these costs is through this relationship:
ΔP = Spread Cost + ασ√(Q/V)
Larger trades, thinner liquidity and greater volatility can therefore increase the cost and market impact of execution. For example, executing $100 million EUR/USD is likely to have less impact than executing the equivalent amount in a relatively illiquid currency pair.
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ΔP = Price impact
σ = Market volatility
α = Market impact coefficient
Q = Size of the order
Q/V = Order size relative to market liquidity
Where does Siege come in?
Siege is designed to address both the spread cost and the market impact.
Traditional FX Execution
Order
Cross the Spread
Signal Trading
Interest
Potential Market
Impact
Siege FX EXECUTIOn
Order
Meet at Mid
Anonymous Matching & Settlement
Move Risk, Not Markets
Trade at the Mid-rate
Match at an independently formed mid-rate and avoid the cost of crossing the spread.
Stay Anonymous
Trading intentions and participant identities remain protected throughout the process, reducing information leakage.
Access Real Passive Liquidity
Interact with genuine institutional trading interest.
Reduce Market Impact
Trade without unnecessarily signalling intentions to the wider market.