Why Can I Not Trade The AUD/JPY Currency Pair in Alveo?

The AUD/JPY has been disabled in the Apiary Fund's Alveo platform in response to some unusual trading activity in the currency pair. The risk exposure was enough that we felt it would be better to halt trading rather than continue exposing the fund to risk of loss.

The challenge seems to be isolated to one LP who is sporadically offering quotes that do not correlate with the rest of the market. The Apiary Fund will continue to watch the pair until we see some stable price structure across all of our LP's.

Please remember that when you look at an AUD/JPY chart on MT4 through a retail broker that the comparison is apple to oranges. Apiary is structured differently than a retail broker and we deal directly with the liquidity provider - not an aggregate feed that funnels trades through a trading desk. The quotes will be similar, but not always the same due to the decentralized structure of the institutional currency market.

When you look at retail feed and compare it to Apiary, the tendency is to judge the two feeds based on price - is it good or bad? At the supermarket, it's good if a price quote is lower at one supermarket the other. However, we all know that doesn't really matter in the financial markets. What does matter is 1) Whether you can actually get the quoted price (quote integrity), and 2) Where the price goes after you initiate the trade (the next quote).

In the case of the AUD/JPY, we have been having issues with both quote integrity and the next quote. As stated earlier, the Apiary Fund will continue to monitor the pair and inform the hive when we feel comfortable opening it back up to trading.