Mark Akass CTO BT Radianz
Mark Akass CTO BT Radianz

Extending connectivity to meet the demands of latency sensitive FX Trading

Mark Akass looks at why with the adoption and evolution of advanced trading strategies in the FX market, the importance of latency is the key question that will arise.

Over the past decade, the continued growth and success of the FX markets have been one of the most remarkable features of the international financial sector. FX is now the largest, most liquid financial market in the world, trading 24/7 around the globe. The number of trading entities and the volume of forex trades being placed has increased to more than $1.9trillion being traded every day [footnote source: BIS study, Triennial Central Bank Survey 2004]. This growth is placing new pressures on technology and infrastructure as electronic trading methods are being implemented aggressively to access the expanding sources of FX liquidity globally. Overall the market is being driven to achieve greater efficiency but still has a way to go before the landscape settles.Evidence of the rapid rise in the uptake of e-FX in the past couple of years is reported in a study from Greenwich Associates, which shows e-FX volumes more than doubled between 2003 and 2004, and that growth is expected to continue. By 2007,...continued

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