Nick Dyne CEO and Founder of Logicscope Limited
Nick Dyne CEO and Founder of Logicscope Limited

Post-trade STP for FX

Given the ready acceptance of front end trading technology connecting sell and buy side participants in the trading chain, it is surprising that the post trade environment for FX and other OTC instruments is still driven largely by resource-intensive, error-laden, expensive and risky manual processes - on both sides. Nick Dyne, CEO and Founder of Logicscope Limited, pioneers of post-trade notification technology dispels some of the myths surrounding STP for FX and other OTC assets.

First Published: e-Forex Magazine 31 / FX Mythbusters / April, 2008

Post-trade STP is nice, but not an imperative? Theories abound as to why post-trade efficiency lags behind front end trading innovation in the FX/OTC markets. “The processes ain’t broke (only inefficient) so there’s no imperative to fix them”. “Traders are disconnected from everything that happens after the button is pressed and don’t really see (or indeed feel) the impact of post-trade cock-ups”. “Markets thrive on inefficiency and real end to end trading STP further erodes competitive advantage and potential profitability (“what we lose on the price, we win back on the overall cost of execution”)”. “Frankly, it’s just not sexy enough to get exercised about”. Etc, etc. "Trading systems have not kept up with the growth in data coming at them. The complexity of the high-performance infrastructure and the rapidity with which it evolves has created opportunities for specialized vendors”. Brad Bailey, senior...continued

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