Isolating the real merits of fully outsourced hosting and FX connectivity services

Outsourcing something as crucial as management of connectivity infrastructure may create concern through the loss of control, however, as Dan Barnes reports here, it can greatly improve flexibility around cost and market access.

First Published: e-Forex Magazine 58 / Networks, Hosting and Connectivity / October, 2014

Opportunities in FX trading are enormous, but the risks are also considerable. In the current low volatility environment, the margins likely to be earned via most strategies are slender. Identifying a decent new trading strategy is hard and a miscalculation may not only lose a firm revenue through trading, but any investment in technology and infrastructure is a potential millstone around its neck. However the need for contact with an increasingly broad range of counterparties threatens to push firms into making technological commitments they cannot keep. “The FX market is increasingly a global market,” says Ralph Achkar, Capital Markets Product Director at Colt Technology Services. “If you look historically where people were trading pairs locally they are now doing so more and more over international markets. Even participants who are focusing on certain pairs in certain markets they are actually starting to focus on or expand their reach into other pairs and as a result of that they...continued

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