Frances Maguire
Frances Maguire

Asset Managers: e-FX helping to solve the jigsaw of complex operational challenges

As asset managers execute increasing volumes online they are starting to re-engineer their businesses models around growing their business through eFX. Frances Maguire reports.

Asset managers are rapidly increasing their volumes of electronic trading and, on balance, welcome lower costs and increased innovation resulting the proliferation of eFX platforms against the disadvantages of liquidity fragmentation. But more importantly, asset managers are demanding more from the providers of eFX, not just in terms of more sophisticated functionality but ease of connection and greater information sharing between the sell-side liquidity providers and the buy-side. For Philip Simotas, president of currency risk management firm FX Concepts, there is little doubt that the FX market will be wholly given over to electronic trading. He says that FX Concepts is rapidly increasing the amount of execution that is carried out electronically for its currency overlay strategies and absolute returns programmes. He says: “Electronic trading has now risen to just under 40% of our overall volume. The market is clearly moving in the direction of electronic trading and it is more a matter of...continued

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