Nicholas Pratt
Nicholas Pratt

Optimising FX feeds: introducing low latency rate engine services

Rate feeds are an essential part of the FX trading process and like every other process it is something that is continually subject to re-engineering and investment in technology development. This development has increased manifold since the advent in electronic and algorithmic trading and it in turn has created a burgeoning vendor market for various software products and applications designed to help banks, brokers and traders make use of rate feeds that can blended, aggregated and optimised to produce an accurate, spike-free supply of prices that reflects true market prices.

First Published: e-Forex Magazine 40 / Forex Technology / July, 2010

These new feed services also need to be able to cater for new and increasingly complex FX instruments in addition to the highly liquid FX spot market. They also need to ensure high availability in all market conditions and also provide improved risk and exposure management operations. But perhaps above all, in today’s market, FX rate feeds need to be very, very quick because the pursuit of low latency still seems to be the most pressing priority for market participants.“All of the big FX dealers are using in-house systems,” says Frederic Ponzo, managing director of consulting firm Grey Spark Partners. “The pricing engines that were built three to four years ago required low latency and tight integration with risk management systems but there were no credible systems out there so banks had to build everything in-house.”Frederic Ponzo “The pricing engines that were built three to four years ago required low latency and tight integration with risk management systems but...continued

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