Adam Hawley Commercial Director at Caplin Systems Ltd
Adam Hawley Commercial Director at Caplin Systems Ltd

FX connectivity – the push towards a real-time environment

Today’s banks are facing a strong and growing interest for enhanced online trading solutions from all client segments. Clients – from funds using algorithms to smaller corporate and private traders – are increasingly seeking broad, multi-asset coverage, and cross-asset trading capabilities to deliver real-time, executable prices at lightning speed.

Speed is of the essence As banks look to upgrade e-trading infrastructures and develop more flexible and scalable platforms, speed of time to market is vital. But low system latency is becoming the critical measurement of speed. It comes down to shaving milliseconds off the time taken to stream, process and send foreign exchange (FX) rates to client trading applications. Limited architecture and scalability lead to high levels of latency that can be frustrating for clients. Where latency causes stale or inaccurate pricing, the bank immediately loses out to algorithmic arbitrage engines. While the dollar remains the measure of general profit, the success and profit of e-trading strategies will increasingly be measured in system latency, with milliseconds valued alongside dollars. Speed is of the essence Banks work hard to differentiate their platforms to retain existing clients and attract new business. By enhancing core functionality and adding richer pre- and post-trade services, they look to...continued

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