Gavin Smith is Global Markets Business Manager at RCP Consultants.
Gavin Smith is Global Markets Business Manager at RCP Consultants.

Consolidating the FX Back-Office

e-Forex technology has revolutionised the trading of FX. Dr Gavin Smith shows us how its application to the FX back office will yield yet more benefits in efficiency and risk reduction.

First Published: e-Forex Magazine 12 / Features / October, 2003

While e-Forex has revolutionised the trading of FX, the application of similar technology to the FX back office is at an earlier stage.The introduction of e-Forex has brought the buy-side into the world of instant electronic FX transactions, previously the preserve of the interbank market with its privileged access to the Reuters and EBS trading systems. The key enablers have been internet-technology and commoditised universal connectivity, which have removed the previous entry barriers to e-Forex trading. Now in principle everyone can connect to the FX market. It doesn't matter where in the world you are or where liquidity is provided. As long as you have credit and connectivity you can trade at extremely tight spreads. Technology has revolutionised the market. Now the same technology is moving into the back office, and promises a revolution in productivity and risk reduction comparable to that achieved in e-Forex dealing.Traditional FX Back OfficeIt continues to amaze us, how much paper is still in use. One...continued

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