Nik Pratt
Nik Pratt

Moving the benefits of e-FX for Investment Managers beyond the advantages of workflow automation

Nicholas Pratt explores why the value proposition of electronic FX trading and use of e-channels by Institutional Investors and fund managers is now stronger than ever in terms of achieving best execution, reducing operational risks, improving performance and reducing costs.

First Published: e-Forex Magazine 54 / FX e-Commerce and Platforms / October, 2013

The value proposition of e-FX for asset managers and institutional investors may well be stronger than ever due to changes in both regulatory reform and the commercial environment that strengthen the case for using electronic trading. On the regulatory front, the various regulations of the G20, from Dodd Frank to MiFID II to EMIR, are all aiming to reduce systemic risk in the capital markets by mandating that more trades take place on electronic platforms.  At the same time there has been a greater awareness from investors, plan sponsors and other asset owners as regards the risk of trading and they want to see processes and safeguards put in place to mitigate this risk. Clearly electronic platforms are the best way to ensure that these wishes are adhered to and that there are clear audit trails to verify the fact. And there has been much greater investment from all participants in their electronic trading that have had a cumulatively positive effect. The market infrastructure firms have spent time and...continued

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