Richard Olsen is CEO of Oanda
Richard Olsen is CEO of Oanda

Electronic delivery of price is not enough!

Richard Olsen believes that in the next few years, instantaneous settlement and continuous interest rate payments in addition to other advanced tools will have a major impact on the development of currency trading.

The collapse of the Internet bubble highlighted the fact that more is required than just launching a product over the Internet to become successful. Products have to be reengineered to take advantage of the inherent functionality of the Internet to improve the price efficiency of the product offered to the customer. Today, there is a vast array of E-Forex products. By and large, these products have confined themselves to an electronic delivery of foreign exchange prices and are a revamped version of the original foreign exchange product. They fail to harness the power of the Internet.The Internet has so much more to offer than mere electronic delivery of prices. The offering of financial products is embedded in a complex system of market conventions, which were developed at a time, when transactions were confirmed by courier services or later by telex (who remembers, how a telex machine looked). These conventions were perfectly adequate at the time. Today, they are outdated. We have to have the courage to...continued

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