Nick Gordon Director of Velocimetrics
Nick Gordon Director of Velocimetrics

High volume FX - taking a new approach to performance management

Would you drive a Formula 1 car around a race track at 240 mph without any instrumentation? “Without instrumentation we can’t run a Formula 1 car at maximum speed. It is a highly tuned piece of engineering that needs monitoring on a real-time basis”. So says Andy Stevenson, Team Manager of Force India, the Formula 1 racing team based at Silverstone. The same can be said for modern low latency FX trading systems today. With the Formula 1 car, there is an entity that can be managed within its own closed environment, except for external factors such as the other cars on the track and the track itself. This is exactly the same for FX Businesses competing against other businesses with their own environments reliant upon exchanges and price data to drive the profitability of the business.

FX business flow instrumentation Like Formula 1, the drive for real-time latency monitoring is coming directly from the technical teams as they are being put under intense pressure by the business to sort it out. The FX Business sees a P&L issue and assumes that a technology problem is the root cause. With the advent of real-time latency monitoring it allows the business and technology to track the behaviour of individual event histories and to find the causes of a P&L problem. In short it is the explanatory power that is the initial benefit to an organisation. Once you have this capability then other benefits can be achieved. Anyone who has sat on the support desk of an FX trading environment can see that there is a vast array of computing technology being utilised to monitor and report on systems. Can there be a new way of monitoring these complex rapidly changing architectures without impacting the highly sensitive low latency business flows? Is there a need for a new way of monitoring these...continued

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