James Hodge Senior Consultant with Treasury Strategies
James Hodge Senior Consultant with Treasury Strategies

Online FX dealing – Building efficiencies between subsidiaries and Group Treasury

James Hodge looks at where the corporate demand for Online Trading and STP Platforms is coming from and how American and European firms may differ in their use of these platforms.

First Published: e-Forex Magazine 17 / Features / January, 2005

The growth in the use of FX dealing and straight through processing (STP) has surged in the last several years, but is still uneven across firms of different sizes or attributes. In his article “Overcoming Resistance to e-FX” in the October 2004 edition of e-Forex, Martin Bergholz reports that the “adoption rate among small and medium-sized enterprises is lower than among the tier 1 companies and banks.” In the survey, he quoted, 32% of the companies under $1B in revenue are active users of online trading platforms and 41% of these companies are not active in planning for their use in the future. Does this mean the future growth in the usage of these platforms is limited and will be focused among the large corporations? The answer is a resounding no. The use of the online trading platforms will continue to grow and may well be strongest in the middle market and small companies.The Growing Demand for Online Trading and STP Platforms In a recent survey of 217 US corporations conducted...continued

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