Fusion Markets sources it's pricing from reputable liquidity partners. More information regarding our liquidity partners can be found in the attached PDF - which is available on our website.
Because our pricing is sourced from external liquidity providers (not us and not from any one related to us) via an electronic communication network and those are passed to the clients there isn't a dealing desk intervening. In terms of market revenue, this is refers to revenue that is derived from clients that take losses on trades. When this happens there is no hedge for the position and no other client an equal weighting on the other side of this position. Meaning sometimes Fusion Markets benefits from this and other times the client does.
What happens after that? Do we hedge each and every single position with that external price maker? Not always, but this is more because we want to provide a better product to our clients because we want to be able to give them price certainty and speed in terms of how we are dealing with them.
If we hedged each and every single individual transaction, there would be more chance of something happening to the second limb of the trade impacting the first. At the end of the day, hedging is about the risk management systems of a broker and how they choose to manage their market risk. We can assure you we monitor all of this very closely to ensure we are not exposed to excessive risk.
In our view, a "market-making broker" is someone who has a dealing desk, and creates their own prices, which can be based on their own proprietary trading positions or risk exposure. That is not how we currently operate so we do not consider ourselves to be that.