Yaacov Heidingsfeld COO of TraderTools LLC
Yaacov Heidingsfeld COO of TraderTools LLC

Pricing IQs - developing more intelligent rate engines

Yaacov Heidingsfeld illustrates how advances in technology are facilitating the challenge of meeting increased demand for deal flow by enabling the development of more intelligent FX pricing and rate engine solutions.

First Published: e-Forex Magazine 23 / FOCUS / April, 2006

To be a leader in the world of electronic Foreign Exchange (eFX), institutions are faced with the challenge of meeting increased demand for deal flow, lowering the cost of acquiring the business and maintaining the level profitability. Advances in technology are facilitating these challenges by enabling the development of more intelligent FX pricing and rate engine solutions.The overall growth in the Foreign Exchange market, as measured by the latest figures from the BIS triennial survey, support this hypothesis by attributing much of the increased volume to the participation of many new buy-side hedge funds in the marketplace. Moreover, technological advances such as Internet trading are significant because they change the structure of the market. A different market structure influences information aggregation capabilities, incentives for interaction between participants and different aspects of market quality, such as efficiency (price discovery), liquidity and transaction costs.In order to support...continued

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