e-Forex Magazine October 2010

e-Forex Magazine October 2010

e-forex magazine. october 2010. Cutting edge e-commerce - client focused FX trading platforms. Counterparty Risk - is it still spoiling the forex party. FX Aggregation - frameworks for overcoming inefficient trade execution. The new MT5 platform - Evoluti

 

Holding back: is Counterparty Credit Risk still spoiling the forex party?

Leader

The FX market has been caught up in the regulatory backlash following the credit crunch. However, as Frances Maguire discovers, the impact is not likely to be as severe as once expected but it will still be resounding and lasting....show more

 

BIS confirms further growth in FX volumes

Foreword

On September 1st, the BIS (Bank for International Settlements) published the preliminary results from their triennial report on International Foreign Exchange Markets. This survey confirms that the world’s largest financial market experienced further expansion, albeit at a lesser percentage than before. Nevertheless, it also confirms that the FX market was not affected by the financial crisis....show more

 

AFME: Working to provide a consolidated voice for FX

Marketplace

The announcement earlier this year that the Association for Financial Markets in Europe (AFME) was to establish a division covering Foreign Exchange (FX) was a sign that change is on the table in the FX world, and that the major firms in the sector are conscious of the need to be active participants in that change...show more

 

Radon gas and FX transaction costs: Radon gas and FX transaction costs: what you don’t know can hurt you

Features

FX trading costs have a lot in common with radon gas levels inside your home – both can go undetected and, if overlooked, both can have serious consequences. ...show more

 

Cutting edge e-Commerce - continuing innovation with client focused FX trading platforms

Features

FX trading platforms are becoming an increasingly important part of the market as use of the e-channel continues to be adopted by different client types. Not even the financial crisis has dampened this enthusiasm for electronic trading and for trading platforms. In fact, as Nicholas Pratt discovers, it is more accurate to say that the aftermath of the crisis and the resultant need to diversify sources of liquidity and minimise the exposure to counterparty risk has created new incentives for both buy and sell-side firms to invest even more in electronic trading....show more

 

Superior Client Servicing: the key to meeting demand for FX Prime Brokerage

Features

Now that dust from the financial crisis is beginning to settle, Frances Maguire explores how prime brokers are upping the ante on providing superior client servicing in order to fuel the next round of growth....show more

 

Re-engineering Post Trade FX: Re-engineering Post Trade FX: Moving into a new era of STP

FOCUS

While previous efforts to deal with the complex and convoluted connectivity issues associated with Post-Trade FX may have occasionally hit the buffers and failed to deliver the anticipated cost savings or the efficiencies required for the market to move to the next stage, evolutionary steps continue apace. Roger Aitken gauges industry opinion....show more

 

Apprehending the culprits: overcoming the causes of 'end-to-end' latency in FX

Forex Technology

The pursuit of ultra-low latency has become a bit of an arms race. And although throwing huge amounts of money at shaving off additional milliseconds and microseconds may not be important for all FX market participants, Roger Aitken discovers that rooting out and apprehending the causes of end-to-end latency remains a key goal for many trading firms. ...show more

 

FX Aggregation: leveraging frameworks for overcoming inefficient trade execution

Forex Technology

Pressures within the fragmented FX marketplace are leading increasing numbers of buy and sell-side firms to review, replace and augment their sources of liquidity. Given that so many firms rely on third party aggregation service platforms to provide this liquidity, how are the developers of these aggregation platforms adjusting to these pressures? How are FX aggregation services being customised and tailored to reflect the individual trading strategies and requirements of an increasingly demanding customer base? And how are these same service providers managing to solve the connectivity and compatibility issues that have hindered the provision of aggregation services in the FX market for so many years while at the same time insulating their clients from the cost involved? ...show more

 

Leveraging next generation technology for real-time risk management in FX

Forex Technology

FX market volatility has been declining since late 2008 when currencies witnessed some of their biggest single-day moves ever. But everyone is acutely aware of how quickly volatility can return. With FX trading volume now exceeding $4 trillion daily (BIS 2010 Survey) and the reality that Tier One banks such as Lehman Brothers can disappear overnight, the stakes have never been higher for FX traders. Accurately measuring and understanding your FX exposure has therefore taken on ever greater importance. ...show more

 

360T goes SuperSonic

Spotlight

360T continues to push the level of functionality with its latest one-click offering to spot traders. 360T’s “SuperSonic Trader” was launched a few weeks ago and has received an enormous response and adoption from dealers using the new functionality. The new product is not only an upgrade of the existing “SuperSonic” spot dealing service, but a complete redesign resulting in a completely new and cutting edge trading facility with respect to technology, functionality, liquidity and appearance....show more

 

Tactical FX trading algorithms: maximising alpha and minimising footprint

Algorithmic FX Trading

The FX market is very different from the equities market but there have been many similarities in the way that trading technology has developed in both asset classes. However, as Nicholas Pratt discovers, it remains to be seen if the use of tactical algorithms will translate over from equities to FX. For example, how will tactical trading algorithms be deployed to intelligently navigate difficult and less liquid market conditions while retaining low latency? What kind of tactical algorithms will prove most popular with all of the different types of FX trading firms? And just how much can the FX market learn from equities and other asset classes in terms of using tactical algorithms?...show more

 

Elevating STP through Business Process Integration

Viewpoint

There has been renewed emphasis on straight-through processing (STP) of FX transactions, arising from the need to handle an ever increasing volume of transactions, manage risk and gain operational efficiency. STP often relies upon enterprise application integration (EAI) techniques to facilitate the flow of data across disparate systems. However, such techniques alone are inadequate when the broader context of business agility, flexibility and efficiency is considered; giving rise to adoption of technology that goes beyond the traditional data-centric EAI methodologies. Service Oriented Architecture (SOA) and Business Process Management (BPM) extensions, including business aligned process-centric workflow definitions and orchestration of services, have the potential to further streamline STP workflows, thereby improving overall business operations and procedures....show more

 

BeTrade – the 1st Community within a Trading Platform

Retail e-FX Provider

"PFSoft aims to attract partners to participate in promoting its BeTrade community by offering brokers access to new markets on a shared-revenue basis and providing their traders with a range of new and unique benefits," says Denis Borisovsky, CEO of PFSoft....show more

 

White Label Partnerships: the key to speedier FX growth strategies

Retail e-FX Provider

Interest in White Label partnerships is growing amongst brokers and financial institutions (FI’s) looking to quickly break into the FX industry, and in particular for those targeting the retail FX sector. When time, cost and opportunity to trade efficiently and fairly are weighed up, White Labelling seems to come out on top. Heather McLean explores why it is increasingly the correct choice over other options....show more

A new addition to the stable - BT Back-Office from Boston Technologies

Retail e-FX Provider

Boston Technologies (BT) is well known as the company that pioneered the MT4 Liquidity Bridge, which is a means of routing trades placed in the MetaTrader platform to an external liquidity provider, such as a large bank or brokerage.  While the Liquidity Bridge has evolved into a powerful execution and risk management tool – and it remains our flagship product - our sights have turned towards innovating in other areas where we feel trading institutions have been underserved....show more

 

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

Retail e-FX Provider

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....show more

How to offer the MT4 Platform to your Forex Traders without having to maintain an MT4 Server or Bridge

Retail e-FX Provider

How to offer the MT4 Platform to your Forex Traders without having to maintain an MT4 Server or Bridge...show more

MT5 - Evolution or Revolution?

Retail e-FX Provider

Since its establishment in 2000, MetaQuotes Software Corp. has become synonymous with the explosion in retail FX software, initially with its FX Charts package and subsequently with MetaTrader. Supporting new data types, a new structure and object oriented programming and implementation MT5 now addresses many of the scalability and speed related issues posed by MT4. Written from scratch, MT5 while in many ways appearing to be an upgrade, is in fact totally new “under the bonnet” as it were, with over 1.1 million lines of code, compared with MT4 which has just over half that. It means that in reality MT5 should work better for a start. With broker workshops, extensive beta testing and a staged launch over the last year, MetaQuotes have taken a sensible approach to the roll out. Most people of course will still be using MT4 at this stage, and MetaQuotes is expect to support this platform for sometime....show more

 

First State Futures: looking to provide a smarter way for traders to invest in FX

Retail e-FX Client

e-Forex talks to Jeffry Suryono, CEO of First State Futures (www.firststate-futures.com) an Indonesian brokerage company with a business model based around making it a first choice for retail FX traders and investors....show more

 

LiteForex: A stable and client-orientated group of companies

Retail e-FX Client

e-Forex talks to Alexey Smirnov, President of LiteForex group of companies, the FX brokerage division of the Straighthold Investment Group, which operates in a variety of international financial markets....show more

 

Fair Trading Technology paving the way to a more transparent and secure FX trading environment

Retail e-FX Client

e-Forex talks to Tim Haman, CEO and Sven-Erick Carlsson, Marketing Director, at Fair Trading Technology (FTT), about the launch of the firm’s new T3 Execution Bridge....show more

NDD execution: providing a conflict free environment for Retail FX traders

Retail e-FX Client

In forex trading, the electronic execution engine used by Non Dealing Desk (NDD) brokers provides traders with direct access to streaming prices from multiple liquidity providers. Unlike in the past, when trades were managed by the broker’s deal desk, trades now go directly to the broker’s NDD execution engine, which instantaneously places an identical trade with the price provider. Heather McLean takes a look at why NDD is the electronic forex trader’s golden fleece....show more

 

The Quant Toolbox: Developing a strategy development Workflow for FX trading

Traders Workshop

The quant bug has finally infected the FX market. The asset class originally known for its slow adoption of technology and small concentration of major players – primarily central banks and government institutions – has exploded, attracting a wide range of quantitative hedge funds, commodities trading advisors (CTAs) and other financial institutions ready to take on this growing market. In fact, every quant firm interviewed for a recent Aite Group study stated that they planned to add new instruments and geographies in 2010, and that FX was one of the two most popular additions. This statistic confirms that as liquidity within the FX market increases, so does the number of traders looking to capitalize on new opportunities. With trillions of U.S. dollars traded daily and more than US$175 trillion placed with FX providers in 2009, this trend appears to have the staying power necessary to transform the FX market....show more

 

High Frequency FX: The benefits of incubation for proven performers

Traders Workshop

The financial crisis of the past two years has led to dramatic changes in the competitive and regulatory landscape of Wall Street. Negative perception, more stringent capital requirements as well as new regulation, such as the Dodd-Frank Wall Street Reform Act, has made proprietary trading less attractive to banks. Several banks have scaled back on proprietary trading while others have announced that they are exploring moving their proprietary trading into a separate hedge fund structure. Furthermore, changes to bank compensation schemes, such as a higher proportion in deferred compensation and the introduction of claw back mechanisms have made it less attractive to work at a major bank. As a result, we have seen an exodus of high frequency trading (HFT) teams out of banks. Some teams are joining hedge funds or proprietary trading firms while others are choosing to go out on their own and create their own high frequency trading firm. In a previous article1 we described the challenges of starting a HFT firm. Here we will focus on incubators and the benefits they provide to start-up HFT firms. ...show more

 

Hotspot FX: The ECN of choice

e-Forex Interview

e-Forex talks with John Miesner, Global Head of Sales and Bill Goodbody, Business Manager at Hotspot FX....show more

 

Victor Lebreton: sharing a passion for Art and FX

Tradertalk

e-Forex talks with Victor Lebreton, head of electronic trading at Quant Hedge, a systematic trading fund based in Paris....show more