Alfred Schorno Managing partner with 360T
Alfred Schorno Managing partner with 360T

e-Trading in the German institutional sector

Alfred Schorno examines the institutional sector in Germany and gauges their enthusiasm for embracing the electronic trading environment.

First Published: e-Forex Magazine 15 / FOCUS / July, 2004

Recently published surveys have indicated that almost 40% of worldwide institutions are trading FX or other instruments online. Compared to this global trend, the institutional sector in Germany, can probably be described on average as slightly behind the curve.Insurance SectorLet me start with the vast landscape of insurance companies in Germany. Looking at them, one can identify a broad spectrum of sophistication levels and dynamics, ranging from extremely conservative and mainly Euro-based, up to well advanced in terms of process optimisation and skilful application of hedging strategies.The need for FX and money market transactions usually results from operational activities, such as the management of premium flows for example, and from a number of other commercial services and engagements. Most of the German insurance companies have centralized and bundled their FX trading and liquidity management operations derived from such activities with the flows from their asset management branches into a single...continued

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