How is indicative Data Gathered? What is it?
Before online trading technology, such as the PFG Platform, brought price transparency to the market by providing live streaming dealable prices, services like Reuters were instrumental in the price discovery process in the FX Market. Reuters (or any market watcher) compiles data from a host of contributors. Clerks employed by Reuters listen to dealers screaming prices on the floor and then enter them into the computer. Fund managers would watch Reuters to get an idea of where the market was, since there were significant price differences amongst providers. Accordingly, Reuters served as an advertisement of prices for institutional investors. It is important to note that prices on the Reuters dealing screen are indicative- showing the last buy/sell- and not necessarily where the market maker is willing to buy/sell the currency pair. For the most part indicative prices are very close to dealing prices. Euro and Yen indicative rates tend to be more accurate, as a larger number of contrib
