Paul Ronan Managing Partner, City Practictioners
Paul Ronan Managing Partner, City Practictioners

FOCUS : FX Flows: Automating Risk and Liquidity Management

Paul Ronan discusses the increased transparency and efficiency of the market as a result of greater access to information and the adoption of technologies that allow participants to employ trading strategies via black boxes.

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

The FX market continues to grow and over the past 18-24 months has truly established itself as an asset class worthy of investment. The arrival of new participants and a change in trading patterns for existing players has lead to a huge increase in trading volumes across a wide range of liquidity pools covering the sell-side, buy-side and the growing retail market. Whilst volume increases – and for some multi-dealer platforms there has been a 44% rise on 2006 figures – are attributed to all participants, there is general agreement that the investment community has contributed to a significant share of this growth, revealing the changing nature of the FX market.In this article, two contributing factors to the above mentioned growth will be discussed. Firstly, the increased transparency and efficiency of the market as a result of greater access to information and the use of trading models such as streaming prices or order management. Secondly, the adoption of technologies that allow participants...continued

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