Dr. Bhaskar Dasgupta Business Solution Director at Front Capital Systems.
Dr. Bhaskar Dasgupta Business Solution Director at Front Capital Systems.

Fitting structured FX on e-trading platforms

Fitting structured FX on e-trading platforms

First Published: e-Forex Magazine 16 / Features / October, 2004

Structured FX products are becoming increasingly popular. New technology facilitates the integration, management and delivery of structured products, leading to new earning opportunities for banks and new trading convenience for their customers.Basic FX products such as spots, forwards, swaps, vanilla options and non-deliverable forwards (NDFs) can be regarded as pure commodity products these days. As with most commodity products, the structure of the FX industry has reshaped itself too, now having a few huge operators on the top who provide the liquidity and rely on revenue generated by tiny margins on massive volumes.A second large group of financial institutions have become pure serviceproviders, relying on service charges on their customer transactions. The banks in this second category cannot withdraw from this service of providing liquidity to their clients, but they outsource this part of their business to the banks in the first group, as they have customer demand to be serviced. Trading in...continued

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