Paul Hasenfus STP Product Manager with FXall
Paul Hasenfus STP Product Manager with FXall

The role of STP in facilitating eFX

If eFX trading and STP is so great, why aren’t we all doing yet? Paul Hasenfus answers that full deal automation is extremely complex and therefore only certain eFX vendors have implemented a model for the entire market.

The traditional process of executing FX transactions in the Institutional Global FX markets is inefficient. Errors occur at every stage of the process making it likely each party is required to identify the problem and then manually repeat the process. The process is labour intensive and errors are costly given the notional size of transactions.The root of the problem is that the majority of FX deals executed between banks and customers are done over the phone. A customer agrees with his bank over the phone to exchange currency on a specific date at a specific price. The executed trade is then manually entered into the deal capture system of the respective institutions. The trade is then further enriched manually to add settlement instructions or confirm the details of the transaction.eFX dealing platformsThe emergence of eFX dealing platforms is dramatically changing this landscape. Single bank systems offered by banks such as HSBC and UBS or Multi-Bank dealing platforms such as FXall or FXconnect are...continued

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