Yaacov Heidingsfeld COO of TraderTools LLC
Yaacov Heidingsfeld COO of TraderTools LLC

FX Order Management: Let the games begin!

Yaacov Heidingsfeld looks at why institutions looking to grow transaction volumes and profitability should examine the benefits of a commercially-available FX Global Order Book.

First Published: e-Forex Magazine 24 / FOCUS / July, 2006

There are two primary factors driving development and investment in FX Order Management (FXOM): business process and added value. With regard to business process, banks are vying to provide more functionality as a means of attracting more customer business. Automating the process also reduces the sales and administrative costs of managing that business. In terms of added value, most banks believe that the information contained in the order book can be used to better understand individual client behavior as well as general industry trends. Evidence of this growing interest can be seen in the proliferation of research in the area of Microstructure pricing.Participants in the FX markets, especially the larger banks and brokerage houses, are now looking to extract value out of order flow. Many of these organizations have grown through mergers and acquisitions, and have therefore inherited disparate business practices and systems – resulting in fragmentation of liquidity. Time differences between their...continued

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