Peter Kelleher Product Director, SS& Technology, MarginMan Division
Peter Kelleher Product Director, SS& Technology, MarginMan Division

Collateralised FX trading: the growing need for real-time Margin Management

Peter Kelleher outlines the range of solutions that are required to cater for the growth of margin trading.

The growth in FX trading and particularly online FX trading over the past 5 years has been mirrored in the growth in margin trading. With the growth in margin trading, comes the need for solutions that offers the capability to deliver the trading functionality, while also providing the risk management and monitoring capability that is required for this business.Traditionally, margin trading was a niche business offered by private banks, offering this capability to their High Net Worth clients, who traded FX in a similar manner to trading Equities, and typically being margined at relatively high margin levels. The advancement of technology has opened up this market place to all levels of customer, which, coupled with financial institutions seeking new opportunities to generate both FX flow and revenue, has led to a need for systems that have the functionality to manage the portfolio on clients’ behalf, while monitoring the risk from the bank’s perspective.Growth in Margin...continued

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