Caroline Henshaw
Caroline Henshaw

Disruptive technology, feeds and the cloud. The new way ahead for FX Market Data distribution

The growth of electronic trading in global FX has revolutionised the way that market data is distributed and used. But, as Caroline Henshaw discovers, with big data comes big responsibility: stricter regulation, the increasing focus on internal risk processes and cost control mean clients are expecting providers to deliver more for less. In the face of these challenges, disruptive technologies are forging a new path in increasingly competitive markets.

First Published: e-Forex Magazine 56 / Market Data / April, 2014

The shift to automated FX trading has been huge. Electronic dealing grew to 66% of all currency transactions in 2013, more than triple the fifth of the market it accounted for in 2001, according to Aite Group. The Boston-based consultancy forecasts that will rise to 76% of total volume in five years and account for around 81% of spot trading – the buying and selling of currency for immediate delivery.  Such rapidly-evolving markets mean how a company manages its data can be the key to its survival. TABB Group believes finding new ways to store and manage big data will continue to be a key imperative for the future of FX trading. “Vital information is often inaccessible, non-existent or overlooked, resulting in missed opportunities to uncover hidden patterns, relationships and dependencies,” said the financial markets strategic consultancy.Regulation drives shift to electronic trading The shift has partly been driven by regulation. Stricter trade reporting rules, anti-evasion...continued

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