Richard Willsher
Richard Willsher

Banks and the Buyside: New developments in electronic FX client services

While tier one banks may have led the way in the development of singe dealer platforms (SDP) the need to compete, innovations in software and the demand for customisation have increasingly led many other providers to build their own, agile and effective platforms. Richard Willsher investigates.

First Published: e-Forex Magazine 56 / FX e-Commerce and Platforms / April, 2014

Execution method by counterparty in 2013 (percentage sharesSource: Triennial Central Bank Survey. © Bank for International SettlementsDealing venues such as multibank platforms and ECNs would like to convince us that SDPs are a threatened species and that it is only matter of time before all trading activity moves to them. The statistics suggest otherwise. Data provided by the latest Bank of International Settlements Triennial Survey shows that “direct” venues, where trades are not matched and managed via a third party, account for roughly half of trades. They also demonstrate that there is still a role for voice of which more later. “An SDP  - what bank wouldn’t want one?,” asks Paul Caplin CEO of Caplin Systems that provide e-distribution solutions for a large range of clients. “What bank would not want a direct relationship with its customers? If a customer wants to trade with you on-screen and you send them to a multi-dealer platform, you are weakening the...continued

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