Easing the brokers burden with powerful new technology and liquidity solutions

With technology advancing at a rapid pace, it has never been easier for retail forex brokers to run their businesses more efficiently. Using cutting edge solutions to get more out of their liquidity providers and their trading platforms, brokers are not just able to survive in tough market conditions and comply with ever more stringent regulations, but they can capture new business opportunities and prosper as well. Heather McLean investigates.

First Published: e-Forex Magazine 59 / FX Brokerage Operations / January, 2015

There are many liquidity management challenges now facing retail FX brokers, particularly those straight through processing (STP) and non dealer desk (NDD) providers. Going back just five years ago, the main challenge facing brokers was finding an STP solution that fit their needs for a single front end platform and a single liquidity provider, says Andrew Ralich, co-founder and principal at oneZero Financial Systems. He notes: “Many of these brokers that are still around today, have proven their sales and marketing model and are now looking to expand beyond a single platform. These brokers have also matured in terms of the number, or type, of liquidity providers they are engaging.”  However, Ralich adds: “This calls for a more complex STP/NDD solution, which consolidates risk and liquidity management across multiple Taker side mediums, and Maker side execution venues. The concept of a ‘Bridge’, or 1:1 execution routing solution is being replaced by what we call...continued

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