Heather McLean
Heather McLean

Avoiding back-office overload - optimising information flows in FX brokerage operations

Heather McLean discovers that trouble is brewing in the FX back office. More investors are hopping onto the online FX trading bandwagon, more money is being traded and trading volumes are increasing. (Note the latest BIS survey figures.) On top of this, systems are being tweaked and honed in an effort to make them go that little bit further, rather than ripping and replacing legacy systems with tools designed for the job. The result? Back-office bottlenecks are building up and FX brokers are facing an increasingly urgent need to start addressing the problem.

First Published: e-Forex Magazine 41 / Retail e-FX Provider / October, 2010

Back office data is growing exponentially and now includes transaction, accounting, and customer profiling information, notes James N. Friedman, chief operating officer at FX Bridge Technologies. He adds: “Data retention and access is vitally important for both its marketing value and regulatory compliance requirements. As more traders use FX as a trading tool, hedging tool and investing tool, not only is there more data, but there are more ways to use that data than ever before.” George A. Popescu, CEO at Boston Technologies, states the FX market has become more mature, which means that brokers have to offer more products, while their margins have decreased and their companies have become much more complex. “The back office of a broker is like a stomach,” explains Popescu. “It has to receive all the information that is coming in and prepare, organise, simplify and assimilate the incoming data. A few years back a successful FX broker was usually offering only one trading...continued

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