Gavin Smith Global Markets Business Manager, RCP Consultants
Gavin Smith Global Markets Business Manager, RCP Consultants

Levels of buy-side integration with eFX

It is clear that the buy-side is trading more and more eFX. Now (encouraged by vocal evangelists of buy-side STP), corporate treasurers are starting to appreciate the benefits of efficiency, accuracy and risk-reduction which follow from deeper and wider technological linkage with their financial service providers.

Some have a vision for the whole financial industry to choose one common technology. In the long term this would achieve vendor-independent “plug-and-playâ€Â connectivity. In the shorter term there are significant gains to be made by simpler pragmatic levels of technological integration. FX is one of the more highly commoditised treasury instruments and one of the earliest adopters of STP. This began in the 1980s when the Reuters Ticket Output Feed (TOF) became the de facto standard for FX deal ticket affirmation inside banks. TOF technology is outdated in today’s Internet world, but remains extremely widespread and reliable. There is no equivalent replacement standard yet, although several well-publicised consortia are developing proposals for messaging standards. For many years RCP has been a leading provider of FX post-trade STP systems in the interbank market. Since 2000 our focus has widened to include integration of eFX trading systems directly...continued

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