Harrell Smith co-head, Product Strategy Group, Portware
Harrell Smith co-head, Product Strategy Group, Portware

Risky Business: Real-time Risk Analytics and Automated FX trading

With both buy-side and sell-side firms finding themselves facing a new set of technological issues related to high volume FX trading, Harrell Smith looks at the challenges they face in implementing effective, real- time risk management solutions.

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

The market for electronic FX trading has become increasingly complex in the past few years. Execution venues have proliferated and opened their doors to a greater number of market participants, particularly hedge funds. At the same time, the technology available to firms seeking to access these venues has become significantly more powerful. These structural and technological changes have helped spur an increase in automated and algorithmic trading. As a result, volumes have soared, liquidity has become more aggressive, and firms – both buy-side and sell-side – find themselves facing a new set of technological challenges related to high volume FX trading.  Of these challenges, perhaps none are quite as important as implementing effective, real-time risk management solutions. Risk, after all, is an area that touches every single point of a firm’s FX trade workflow, from real-time client profiling and price calculations to firm-wide position management. With more and more firms...continued

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