Liquidity has never been more critical, or more misunderstood. In this interview at the LiquidityFinder Autumn Social, Andrew Saks spoke with Paul Groves, CEO of Finalto Financial Services, to discuss the realities of liquidity provision in today’s hyper‑volatile, gold‑centric CFD market, and what brokers need to survive the next cycle.
From counterparty risk and Tier‑1 relationships to the dangers of over‑concentration in a single asset class, the conversation covers why capital, connections and flexible infrastructure are now the defining factors between brokers that thrive and those that struggle.
Key themes in this interview
- Gold’s dominance and volatility: How gold (and to a lesser extent silver) has absorbed 60–70%+ of many brokers’ daily volumes, with $200–$300 intraday moves becoming the norm — and why this has reshaped risk, margin and liquidity management.
- Tier‑1 and non‑bank liquidity: Why access to Tier‑1 banks and established market makers matters most in stressed conditions, and how non‑bank providers like Finalto add value through balance‑sheet strength, trading lines and deep counterparty relationships.
- Counterparty risk in extreme volatility: The importance of well‑capitalised brokers, rapid collateral flows (including stablecoins like Tether) and trusted provider relationships when gaps appear and payments can’t clear in time.
- Over‑concentration risk: The danger of building a business model around one hot product (gold CFDs) and why diversification back into FX, indices, equities and other commodities will be essential as volatility regimes shift.
- Infrastructure as strategy: Why a comprehensive, flexible back end that allows brokers to choose asset classes, manage risk dynamically and connect to multiple liquidity sources is vital.
Why this matters:
For brokers, liquidity providers and trading platforms, the implications are direct:
- Volatility is the new normal. Even “quiet” days now see ranges that would have been considered extreme 5-10 years ago. Infrastructure and risk engines must be built for this reality.
- Diversification is risk management. Brokers that have ridden the gold wave successfully must now prepare for a post‑gold environment by offering multi‑product coverage and employing flexible pricing and risk tools.
- Capital and connectivity win. Well‑capitalised providers with Tier‑1 and non‑bank liquidity access, combined with modern back‑end infrastructure, will be in a stronger position to capture market share.
Watch the full interview:
