Heather McLean Freelance writer
Heather McLean Freelance writer

Online Technology - a key differentiator for Trading arcades and prop shops.

Heather McLean interviews industry players to see why Trading Arcades & Prop shops are growing in influence and how their trading models differ.

First Published: e-Forex Magazine 22 / Retail Forex Client / January, 2006

In the late 90s, when the London International Financial Futures Exchange (LIFFE) was forced to change from an open outcry to a fully electronic exchange, arcades were born. The closure of the Liffe floor meant that over only a few months, there were literally hundreds of traders looking for a desk to trade from. Small companies sprang up in London, where the market has now reached saturation point. From the UK, this model has spread across the world, and it is now eyeing up FX as a tasty new liquid and volatile market.Once trained on an electronic FX platform, traders have two main choices on where to take their skills. Either to a trading arcade, where traders work their own account, or a prop shop, where the trader works the shop’s account. FX is spreading through the electronic trading rooms of the globe. Ray McKenzieRay McKenzie, director of FX products at Chicago Mercantile Exchange (CME), explains: “In the futures world, the number of these prop shop and arcade firms are growing very...continued

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