Debate : Algorithmic FX trading: technology - moving hype to reality

The FX market has been talking about Algorithmic trading for some time now and we are now reaching a stage where traders can expect to see some very definite and concrete benefits in deploying this new trading methodology. e-Forex invites Jesper Alfredsson, Head of Algorithmic Trading North America, Orc Software, Steve Oppenheimer, Director of Marketing at Aegis Software and Lee Ratner, Vice President and Global Head of FX, FlexTrade Systems to discuss some of the technology issues associated with taking Algo FX to the next stage in its evolution.

First Published: e-Forex Magazine 30 / Debate / January, 2008

Some commentators have suggested that securing the right technology to facilitate fast and reliable pricing and execution capabilities should be viewed by Active traders seeking to utilise and deploy Algorithmic FX trading solutions as equally important as the development of the underlying strategies and models that generate the trading signals themselves. Do you think that's true or possibly an exaggeration? Alfredsson: For algorithmic FX trading to be successful, firms must ensure that both their strategies and their data and execution capabilities supporting these strategies are implemented correctly. Algorithmic trading requires the decisioning and the execution come together rapidly and correctly. Any piece missing in this equation will make trading less successful. For flow side participants the requirements for offsetting client orders quickly and efficiently on multiple sources requires the right technology and an effective algorithm. Those more on the macro and trend side of the market do not as...continued

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