Mike Binns is Product Manager, FX Options at GFI Group Inc.
Mike Binns is Product Manager, FX Options at GFI Group Inc.

Broking FX Options Online : Hybrid Model Set to Dominate

The debate in FX Options with respect to electronic trading platforms has focused on whether ownership of a trading platform is desirable from a broker’s perspective, and if so, whether an electronic only or a hybrid broking model is superior. Mike Binns at GFI gives us his opinion.

First Published: e-Forex Magazine 9 / Viewpoint / January, 2003

The debate in FX Options with respect to electronic trading platforms has focused on two aspects: firstly, whether or not ownership of a trading platform is desirable from a broker’s perspective, and secondly, assuming that it is desirable, whether an electronic only or a hybrid broking model is superior. At the end of a year that has seen active implementation of both models, there is mounting evidence that the hybrid version is superior. More importantly, it seems likely that ownership of a hybrid solution will become a key arbiter for success, neatly dividing the broker world in two between “haves” and “have-nots.” Hybrid or ElectronicOne only needs to observe the widespread adoption of platforms such as FXALL, FXConnect and Currenex to realise that electronic dealing in FX is here to stay. Theoretical benefits of electronic systems, such as ease of execution and improved delivery of information and processes are now tested in action. What these platforms have in common is...continued

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