Roger Aitken
Roger Aitken

Financial Network Communities - offering FX Trading firms access to execution venues and service providers

Roger Aitken explores the continued drive by FX trading houses to secure low latency trading solutions and discovers how financial network community ecosystems, built around co-location, proximity hosting and managed service offerings, play a pivotal role in allowing trading participants to remain efficient, secure and generate profitable returns, amid rapidly burgeoning daily FX trading volumes.

First Published: e-Forex Magazine 44 / Forex Technology / July, 2011

At a time when global equities trading volumes in North America have dipped, it is not surprising that interest in the trading opportunities of the FX market have become an enticing proposition as firms seek diversification in their strategies and alternative ways to generate profits and potential alpha. Evidencing this trend, a recent report from Boston-based Aite Group indicated that high frequency traders (HFT) accounted for some 28% of the total volume in the futures market, which includes currencies and commodities. This was up from 22% in 2009.  New generation of communities Against this backdrop, a new generation of financial network communities are being developed that provide FX trading firms with hubs for improved access to various execution venues, FX liquidity sources and FX market data and service providers. Furthermore these financial ecosystems are continually expanding in response to seemingly unabated customer demand.  This demand is coming from a range of firms all looking...continued

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