Managed connectivity – the better way to access Emerging Market FX

Dan Barnes reports on how market volatility has made flexibility and control of connectivity key for FX trading firms looking to access and leverage opportunities in emerging markets.

First Published: e-Forex Magazine 61 / Networks, Hosting and Connectivity / July, 2015

The Swiss franc and Russian rouble are benchmark events for FX trading firms weighing up their technology and infrastructure partners. Not only do currency shake-downs – as the rouble and franc have seen – drive home the importance of reliable connectivity and speed, to survive the subsequent fallout and bankruptcies requires a universe of counterparties. As macro events hit larger currencies, the developing economies who are exposed to larger markets are also at risk of volatility. That can impact both local and international traders says Aleksey Larichev, head of business development at telco Avelacom. “We see many companies in Russia, Europe and the US trying to move into emerging markets because the profits on common markets, such as the US and Asia, are shrinking,” he says. “They are exploring new venues. Dubai is growing pretty fast, Mumbai, Singapore and Johannesburg too. These markets are pretty new and while traders have technique they are not fully familiar with...continued

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