e-FX demands – a clear sell side strategy

With increasing customer eFX demands cutting margins, James Kemp stresses the importance for sell-side players to define an effective eFX strategy.

The global foreign exchange market is rapidly evolving as the leading banks continue to look for new ways in which to deal with reducing margins. Evolutionary strategies are coming to the market, with pack leaders concentrating as always on the two big wins: how to increase revenues from lower margin business and how to reduce costs to maintain profitability.Electronic trading offers much of the potential solution to these challenges. It offers the ability to increase volumes whilst maintaining a volume insensitive workforce – more volume with the same resource. The benefit on the cost side is equally as simple – reduced costs through limited manual intervention and error, and again, the ability for slick, integrated systems to manage far higher volumes than any manual process can.“As margins tighten so the banks need ever-greater volumes to hit revenue targets..”However, customers – both corporate and institutional - are more...continued