Harrell Smith Manager, Securities and Investments at Celent.
Harrell Smith Manager, Securities and Investments at Celent.

Privacy Please – the attraction of anonymous FX trading.

Harrell Smith examines how the inflow of capital into the hedge fund community will lead to more firms exploring the use of trading platforms that offer anonymous execution.

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

Anonymity is one of the main advantages of electronic execution. A plethora of FX trading platforms today offer anonymity, helping firms to keep private and profitable.The growth of the global foreign exchange market has been well-documented, as has been the rise of electronic trading. According to recent estimates, electronic FX trading currently accounts for over 60% of spot volume in the inter-dealer community, and 43% of spot volume in the dealer-client market. Celent predicts that by the end of 2007, e-trading adoption in the inter-dealer and dealer-client markets will increase to 90% and 60%, respectively, driven by greater standardization of technology through industry initiatives such as the Continuous Linked Settlement (CLS) and FIX. With execution having long-since become commoditized, firms are now turning to e-trading as a “means to an operational end” – that is they are looking for technology with extensive settlement and allocation functionality, that can help firms deal...continued

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