Harpal Sandhu CEO, Integral Development Corp.
Harpal Sandhu CEO, Integral Development Corp.

A Darwinian solution for eFX trading systems – adopting a standard platform

Now that the shakeout is abating of a various eFX business models and trading technology what is the standard for today’s eFX trading platform and how did it get that way? Harpal Sandhu gives us his opinions in this edition of VIEWPOINT.

First Published: e-Forex Magazine 10 / Viewpoint / April, 2003

Now that the shakeout is abating of once promising business models and new trading technology, what is the standard for today’s eFX trading platform and how did it get that way? Here’s what we’ve learned.In the most basic terms, for proprietary or third-party systems to survive and prosper in the newly cost and profit conscious capital markets, the following deliverables are regarded as ‘standard’.You must have field-proven, open technology; established IT partners able to provide flexible long term support; a low fixed and variable cost structure allowing flexible business models; a wide network of market participants; and, of course, the ability to attract a critical mass of deal flow and access reliable liquidity sources.Ever decreasing margins and the inability to expand credit lines make profitable growth in the forex business extremely difficult. To compensate for tight spreads, dealers must leverage low-cost electronic distribution to support higher volumes. To...continued

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