David Allanson Director, business development atHotspot FXi in London.
David Allanson Director, business development atHotspot FXi in London.

eFX: A multi-platform approach enhances trade execution performance

The growth and rapid evolution of eFX has presented customers with an array of market models for executing FX transactions. David Allanson looks at the advantages each of them has.

First Published: e-Forex Magazine 14 / Features / April, 2004

The growth and rapid evolution of eFX has presented customers with an unprecedented array of market models for executing foreign exchange transactions. Which is best? This article discusses the advantages of an integrated approach combining single bank platforms, disclosed multi-bank portals, and anonymous spot FX exchanges.Imagine you work on the execution desk of a hedge fund and one of the portfolio managers asks you to buy Euros 50mm against the dollar. Imagine also that time stands still, enabling you to evaluate the different options for consummating that trade.You could pick up the phone to your favorite bank, generate an RFQ (request for quote) from a multi-bank eFX platform, check the prices on one of several single bank streaming price platforms that guarantee prices up to previously negotiated limits, or evaluate the current liquidity and price on the multibank exchange/ECNs, which allow hedge funds and other buy side customers to input their own bids and offers and trade instantly and anonymously....continued

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