Chris Pickles works with Radianz
Chris Pickles works with Radianz

Extranets – a new breed of services to facilitate eFX

The public Internet has great advantages but you get what you pay for and there are no guarantees, warranties or service level agreements. Chris Pickles discusses how these and other factors have brought Extranets to the fore in eFX.

The foreign-exchange market must be the ultimate in “distributed markets.” Unlike the equities market, it has no formalised “hubs,” such as stock exchanges or central depositories. The forex market doesn’t have a restricted membership – in principle, any organisation can do business with any other organisation, anywhere in the world. The forex market is being seen more and more as an example that financial markets in general will follow in the future. In some major countries, only 50 percent or less of domestic equity trading volume is now traded through the local stock exchange. In the United States, electronic communications networks (ECNs) are attracting trading volume away from the Nasdaq Stock market. Markets in general are becoming more and more distributed and global. A major factor that has enabled these changes has been the increasing use of extranets – data networks that link service...continued

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