Lee Ratner Vice President, FX sales at FlexTrade discusses why the next level of trading in FX markets is likely to be more algorithmic in nature.
Lee Ratner Vice President, FX sales at FlexTrade discusses why the next level of trading in FX markets is likely to be more algorithmic in nature.

Assessing a fundamental shift in the way the FX marketplace trades

Lee Ratner outlines why the next level of trading in FX markets is likely to be more Algorithmic in nature.

First Published: e-Forex Magazine 21 / Features / October, 2005

With the steady growth of the FX markets and the increasing adoption of eFX among the market participants, algorithmic trading is emerging as the next level of trading technology for market participants to contend with. Coupled with the growth of the FX Markets, there has definitely been a steady movement away from phone and RFQ trading behavior to one-click trading platforms (Proprietary Bank systems and Portals) and the emergence of trading over API live streaming prices. In parallel to the change in trading behavior on the buy-side, there has been movement from li-quidity providers to better manage their risk within a compressing margin environ-ment. Both market participants are realizing quickly that algorithmic capabilities will be a key component of any electronic trading/risk system being implemented.Demand for faster ways to tradeWe are just at the beginning of a fundamental shift in the way the FX marketplace trades overall. Learning from our ten years of experience in the equity and futures markets;...continued

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