Mark Clarke is a Director at C-View Ltd
Mark Clarke is a Director at C-View Ltd

Alpha and the benefits of electronic foreign exchange

Asset managers are seeking to generate returns (or alpha) and demanding improved service provision in the process. How can the sell-side differentiate themselves from the competition and capture this business? Mark Clarke provides some answers.

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

Foreign Exchange has finally come of electronic age. Every bank playing on the international stage has their own proprietary platform offering electronic delivery of spot FX, forwards and 1st/2nd generation derivatives with their volatility surfaces. The playing field is rapidly being levelled, with most banks offering relatively homogenous pricing & liquidity. The key question everyone is asking is how can the sell side differentiate themselves from the competition and capture the critical mass of business that will make any flow model, such as the modern FX business, profitable?What do the buy side want in terms of service provision which will encourage such end users to align themselves with a particular bank or group of banks?I have the dubious advantage of being a poacher turned gamekeeper. As a spot FX market maker for 16 years and globally responsible for FX trading for an investment bank, I can see and appreciate the challenges facing sell side institutions. For the past 12 months I have been working...continued

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