Sang Lee is a consultant with Celent Communications
Sang Lee is a consultant with Celent Communications

Real-time messaging systems: automation in FX Prime Brokerage

The focus on STP in Prime Brokerage has progressed into examining the entire FX trading life-cycle. Sang Lee considers how technology can alleviate existing market inefficiencies.

In the last few years, growing interest in the foreign exchange market has been undeniable. After decades of mainstream neglect, the foreign exchange market, which also happens to be the largest and most liquid single financial market in the world with an average daily turnover of over US$1 trillion, appears to have finally caught the attention of the global securities and investment community. The foreign exchange market is no longer dominated by the relationship between corporate treasuries and large commercial banks. Instead, there appears to be increasing activity coming from the relationship between banks and financial clients, especially from hedge funds, and Commodity Trading Advisors (CTAs).With the growing influence of these leverage funds in the foreign exchange market, the foreign exchange (FX) prime brokerage market has also experienced noticeable growth in the last couple of years. While a more recent phenomenon compared to their counterparts in the equities and fixed income side, FX prime...continued

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