Sinan Baskan Director, Business Development, Financial Services Industry, Sybase, Inc
Sinan Baskan Director, Business Development, Financial Services Industry, Sybase, Inc

Database Integration: The next big challenge for FX Risk Management

Over the past few years amidst a global financial crisis, Foreign Exchange trading has seen steady growth and experienced important structural changes. The institutions in FX markets have begun a serious review of the underlying technology infrastructure, and assessment of the capabilities required for competitive positioning in the next decade.

First Published: e-Forex Magazine 35 / Features / April, 2009

FX Markets are likely to be more attractive to the buy-side in the near future since it tends to be counter-cyclical relative to equities and fixed income because their effects on a firm’s balance sheet are minor and more transient. However, the recent events will prompt a shift in focus to transparency and portfolio risk and away from execution efficiency.  The increased sensitivity on risk management with particular emphasis on counterparty exposure, increased use of algorithmic trading and rising demand for FX brokerage services are expected to be the primary drivers for the next-generation trading platforms.  In this article we will cover the business drivers and technology requirements that will shape the demand for new infrastructure and products. We will identify the basic characteristics of next-generation systems that will help the industry.FX Markets – growth and challenges By the end of 2008 by most estimates, daily volume of FX trading globally exceeded $3.5 trillion,...continued

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