Lydia Solinski,  Product Manager Market Data, 360 Trading Networks
Lydia Solinski, Product Manager Market Data, 360 Trading Networks

Time to embrace the data revolution

The winds of change have begun to blow in the world of FX Swaps, and as a result it’s becoming increasingly apparent that knowledge in the form of accurate market data truly is power.

Today, whether pricing or hedging FX swap trades, banks are still relying on market data feeds that are merely indicative of where the market is. Why? One reason is because in today’s FX swap landscape, voice brokers still dominate. This domination of swap flows within the voice broker space inherently limits both the quality and reliability of swaps market data. By virtue of the majority of interbank swap executions being carried out over ‘’voice’’, audit trails of quotes and executions are often delayed, resulting in the slow data entry of ‘’Live’’ rates by voice brokers, which can make market data unreliable. Where automation of quotes is present over the request for quote (RFQ) process, the ability to automate electronic hedging remains limited. All of which contributes to the unreliably of incumbent swap market data feeds.   Another reason why these feeds are not accurate is because even when FX swaps are executed electronically, it is via...continued

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