Dan Barnes
Dan Barnes

Emerging Market connectivity - The key to capturing new FX trading opportunities

Reaching natural liquidity when trading EM currency pairs requires a connectivity provider that has the resilience and reach to provide access regardless of local environment as Dan Barnes discovers.

First Published: e-Forex Magazine 79 / ALGOFX LAB / December, 2017

Firms looking for liquidity in emerging market currency pairs can typically find trading opportunities in the major data centres in developed markets. However trading directly into the national market can provide natural liquidity, sourced from corporates and investment firms who engage with overseas counterparts for business.  “I would say emerging market connectivity isn’t necessarily about low latency, particularly in Asia,” says James Banister, CEO of FXecosystem. “I think the local market, if we can frame it like that, has different drivers. There are exceptions in some of the major hubs such as Singapore and Hong Kong, either firms trading locally or back to London. But if you are a regional bank the priority is more about being able to get the overall trade done and less that it’s done at an ultra-low latency. The volume of transactions is just not the same as it would be in the major trading centres of London, New York and Tokyo.” The challenges in...continued

Exclusive Content

The full article is only available to current subscribers. Click here to sign in or subscribe by clicking here