Roger Aitken
Roger Aitken

Technology: unlocking the power of FX Market Data

With FX transaction volumes and associated data rates seemingly spiralling, the issues facing large, medium and small sized trading firms in the FX space would appear undiminished. Handling and exploiting the situation fundamentally requires a critical evaluation of systems, IT architectures and budgets. Roger Aitken canvasses industry opinion on how technology is helping to unlock the power of FX market data.

With trading in the world’s foreign exchange (FX) markets estimated by the eighth Bank for International Settlements Triennial survey (Apr-Dec 2010) to have reached US$4 trillion (trn) daily - up 20% over the 2007 survey figure - handling market data presents an ever growing and persistent pressure for financial institutions trading the asset class.  This is particularly so given that a little over US$1trn is accounted for by spot FX transactions alone - largely driven by the big institutional players. Coping and handling ballooning levels of market data - rates, tick data, historical data and message traffic - coming from ECNs and traditional FX trading venues certainly requires robust technology. Handling that is largely influenced by the type of trading institution and the strategies they pursue. Basel-based BIS said that growth was owed largely to the increased trading activity of “other financial institutions”. This customer category is believed to have contributed 85% of the...continued

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