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

Addressing the problem of give-up transactions in prime brokered trades.

Sang Lee explains the Traiana Harmony initiative based on providing a shared utility to manage the inter-bank, post trade processes in prime brokerage, eliminating a large inefficiency between banks.

Until recently, it was commonly presumed and proposed that typically in every transaction value chain the establishment of an exchange was necessary. Whether it was the trading of goods and services between manufacturer's and suppliers or trading of foreign exchange contracts between large global forex broker/dealers and their clients, a centralized, regulated exchange was often viewed as the ultimate solution. While this heralded ‘evolution' in industry structure has yet to show its face, some important lessons were learned and continue to impact trading today, most visibly in FX trading, an industry with many experiments in multi-bank exchanges or portals.Inefficiency, Two WaysThe business plans of every exchange undoubtedly began with “wonk-ish” details around the inefficiency in the OTC FX trading industry and details of how the industry would, domino-like, move to an exchange-traded or at least a centralized online trading model, replacing direct dealing, where...continued

Exclusive Content

The full article is only available to current subscribers. Click here to sign in or subscribe by clicking here