Nicholas Pratt
Nicholas Pratt

Cutting edge e-Commerce - continuing innovation with client focused FX trading platforms

FX trading platforms are becoming an increasingly important part of the market as use of the e-channel continues to be adopted by different client types. Not even the financial crisis has dampened this enthusiasm for electronic trading and for trading platforms. In fact, as Nicholas Pratt discovers, it is more accurate to say that the aftermath of the crisis and the resultant need to diversify sources of liquidity and minimise the exposure to counterparty risk has created new incentives for both buy and sell-side firms to invest even more in electronic trading.

For the banks and service providers that have developed electronic trading platforms there are also more incentives to increase investment. Their clients are now more demanding and also more diversified, particularly now that there is a new interest in FX from different investor types who are familiar with electronic trading from their background in equities and expect the same level of sophistication in the FX market.  Consequently banks are making their platforms more client-focused as opposed to having one single product to serve the entire market. They are also deploying more scalable and flexible infrastructure in a bid to gain market share in what is becoming an increasingly competitive market. But many challenges still face the platform providers – for example, how do they provide a level of customisation for different client types but retain some consistency in the underlying technology? How do they manage to provide the low latency and automation but also retain the high level of...continued

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