Nicholas Pratt
Nicholas Pratt

Build versus buy: choices for deploying advanced Algorithmic FX trading infrastructures

To buy or not to buy. That is the question. Whether 'tis nobler in the mind to suffer the slings and arrows of outrageous vendor hype or to take arms against a sea of troubles by building an FX algorithmic trading system with your own in-house resources. Ay, there's the rub. Nicholas Pratt investigates.

Sullied Shakespeare soliloquies aside, the buy-versus-build debate continues to resonate in the financial technology space. “It’s the classic question when it comes to technology and banks,” says Giles Nelson, chief technology strategist at Progress Software, a provider of complex event processing technology. In the past, the answer to the questions has often been predicated by the size of the institution in question. The large banks have used their own considerable IT teams to produce their own systems while the smaller institutions have opted to seek help from third party vendors. But this is changing, says Nelson. “The big banks have vast IT resources and many would like to use these resources as much as possible. So in terms of FX algorithms they may want to look after the business end (the actual algorithms) themselves. But we have an increasing number of big banks that use our systems.”It can often depend on the culture of the banks rather than their size, says Nelson. For...continued

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