Nicholas Pratt
Nicholas Pratt

Taking a more holistic approach to the business of FX Liquidity Management

Liquidity distributing banks are looking to build more holistic liquidity management systems that are able to cater for a faster, more diverse, more complex and more competitive marketplace. Nicholas Pratt examines some of the challenges involved and the ways they can be resolved.

First Published: e-Forex Magazine 43 / Features / April, 2011

Harder, Better, Faster, Stronger is the title of a popular song produced by French techno music producers Daft Punk. In addition to selling thousands of copies, it has also become a musical tribute to the ability of technology to make the world a more efficient place. This clearly evident in the following lyrical refrain: “Work it harder, make it better Do it faster, makes us stronger More than ever, hour after hour Work is never over” This chorus of sorts neatly encapsulates how technology developments have the ability to create far greater processing efficiency yet also generate far more complexity, producing an equilibrium of sorts where the end result is that ‘work is never over’.  Such a thought is evident in the FX industry where algorithmic technology has created a whole range of new trading patterns, participants, platforms, prices and practices, all of which create new challenges. And the one part of the FX trading process where these challenges are possibly felt more...continued

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