Understanding the true benefit of outsourced FX connectivity

FXecosystem, a leader in outsourced connectivity services to the FX market, provides global FX banks, financial institutions, fund managers and retail FX brokers with enhanced connectivity and operational efficiencies. James Banister, CEO, FXecosystem discusses key factors to consider when deciding to outsource all or part of your connectivity requirements.

First Published: e-Forex Magazine 61 / Sponsored Statement / July, 2015

1. Why outsource?

Many banks and brokers simply do not have the in-house skills or resource to manage their connectivity 24x7 and understand that working with a specialist provides clear operational and cost benefits. The consolidation of many lines into one means that via our network clients can reach counterparties without the need and cost of leasing their own communications. We call this the FXecosystem Meet-Me-Room™ which delivers a single point of contact to connect to global FX banks, ECNs, vendors and buyside institutions, eliminating the need for multiple leased lines. 

2. Why use a datacentre?

We have invested heavily in our datacentre infrastructure and working with us will provide instant benefit, as hosting trading platforms within the same site or datacentre as the markets provides significant advantage over any company who isn’t co-located, in terms of physical trade speed. In fact, FXecosystem sends a FX price over its dedicated networks to New York and back to London in 65.14milliseconds (the blink of an eye is around 300 milliseconds).

3. How to achieve connectivity reliability? 

Reliability is absolutely crucial for our clients. We provide multi routes to market and have built a robust network which can suffer more than a single point failure and still maintain above SLA operations.

Our network has been engineered to minimise the latency being introduced to all counterparties, without the loss of operational resilience. We monitor the lines and use forensics when required to understand where flows are going wrong. The use of high end/ low latency equipment and advanced reporting methods allows us to provide detailed, real time analytics, granular representation of trade data and flow, along with advice on reductions for latency. Capacity can potentially create bottlenecks, so we identify when to allocate larger sizes of pipes to help to remove these obstructions. We monitor our networks 24x7 using real time software to ensure full reliability. 

FXecosystem has built a reputation over the last five years for providing reliable, robust and scalable connectivity solutions. The company has an impressive client base which consists of all the major FX banks and financial institutions globally. For further information please visit: www.fxecosystem.com