Nicholas Pratt
Nicholas Pratt

Special FX building a new breed of trade execution platform

Technology within the financial markets does not stand still for very long and, despite the advances made in electronic trading and execution in the FX market, the next stage of development and the building of a new breed of trade execution platforms are well under way. Nicholas Pratt explores some of the ways that these developments are taking place and what expectations banks and brokers have of their platform providers.

More and more traders are migrating away from the single asset class strategies of the past towards either multiple or cross-asset class strategies – a trend which must surely have implications for the execution platforms they use. Similarly new and more complex instrument types within FX are becoming increasingly popular which means that trading systems will have to be able to adapt and exhibit enough flexibility to incorporate these new instruments.Alongside these new trends there are still the enduring themes that have remained important over the last few years – the increasing need for straight-through-processing and greater connectivity and, more controversially, the demand for low latency and high speed. The successful adoption of messaging protocols such as FIX has helped in terms of connectivity but is there still work to be done in this space? Similarly is there still a call for low latency or have most traders reached a point where execution can be performed no faster without significant...continued

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