e-forex magazine, April 2010, Regulatory Arm Wresting, can the fx markets strike a balance. Build versus buy, choices for deploying advanced algorithmic fx trading infrastructures. iPhone apps, a powerful new tool for forex traders.
The crisis came and the crisis went and FX kept on functioning well. Even at the peak of a once in a century crisis, it carried on performing. More astonishing, it shows increased resilience and keeps on attracting new market players. ...show more
The market environment and events over the last two years have brought regulatory concerns around the world's financial services into the spotlight. There is more scrutiny over the general architecture of the market than before the credit crisis. The regulatory concerns around FX have yet to move beyond political rhetoric into hard business practicalities. At the moment FX feels hard done by. The industry sees itself as having ridden the credit crisis with a robust infrastructure and a self-regulated concern that combines STP efficiencies with broader concerns for systemic risk as part of the natural evolution of the business model....show more
Global foreign exchange markets continued their migration to electronic execution last year as e-forex trading volumes increased amid a decline in overall FX trading activity. ...show more
The CLS Aggregation Service, jointly built by CLS Group and Traiana, an ICAP company, went live in January, providing trade aggregation services to participants active in the over-the-counter FX market. Frances Maguire explores how the service is heralding a new chapter in operational risk reduction and banking industry collaboration....show more
Banks and corporates have long relied upon strong relationships in FX where pricing and services are built around the size and type of the order flow. However, while the growing use of electronic over voice trading for vanilla transactions has freed up banking staff to focus on the higher value, more complex deals and the automation brought by straight through processing have lowered costs and brought greater efficiency, it means there is less daily contact. ...show more
While post-trade solutions might not be considered to be at the sexy end of the FX trading spectrum and the inter-bank foreign exchange STP piece might be largely “job done” with recent initiatives such as from CLS and others, possibilities to further streamline the post-trade FX space lie largely amongst corporates and Tier3-4 entities. Roger Aitken examines some of the issues....show more
High frequency trading is often referred to as an arms race. While this image evokes all the machismo traits of the capital markets, it also suggests there is a huge amount of overspending on unnecessary tools - after all, what's the point in being able to blow the world up five times over? The pursuit of ultra-low latency is one area of high frequency trading where such spending has been questioned. Of course it's important to have an efficient and timely trading process but how many milliseconds do you really need to shave off that execution time? Exactly how close to the point of execution do you need to co-locate your servers? And what happens when everyone ends up with the same 0.0000001 milliseconds latency in the end?...show more
Jon Vollemaere takes time out from tweeting and throwing sheep to talk about LetstalkFX.com, a new portal for the FX Market....show more
As the FX market continues to grow in volume and in participants, it is becoming increasingly competitive on the trading side and much harder to derive the same level of profit as in the past. As a result, the financial world is facing pressure to decrease the cost of processing transactions. There has never been a more appropriate time to highlight the importance in ever higher volume back-offices of the need to streamline operations and maintain an efficient Exceptions Management process....show more
There is always room for improvement. This maxim is evident in some areas more than others, particularly in the capital markets industry where the financial crisis exposed the need for some collective pulling up of socks in areas such as risk management, regulation and governance. On the trading side, the pursuit of continual improvement has been much more apparent. Resources may be restricted somewhat due to the current market conditions but, at least in the FX market, firms are looking to harness more intelligent algorithms to enable superior order management and execution and to take their FX algorithmic trading capability to the next level. ...show more
To buy or not to buy. That is the question. Whether 'tis nobler in the mind to suffer the slings and arrows of outrageous vendor hype or to take arms against a sea of troubles by building an FX algorithmic trading system with your own in-house resources. Ay, there's the rub. Nicholas Pratt investigates....show more
The events of the past 18 months have put credit firmly in the spotlight, giving rise to a new round of product innovation within the FX Prime Brokerage space. Frances Maguire explores how it has also raised the ante on improving customer service levels amongst the leading providers....show more
January 13, 2010, is a date that many of us in the world of Forex regulation will not soon forget. On that day, the United States Commodity Futures Trading Commission (“CFTCâ€), after almost two years of deliberation, proposed a set of regulations that created a tsunami of outcry in the retail foreign exchange market. These long-awaited rules were a product of the 2008 Farm Bill that intended to require registration of US introducing brokers, commodity trading advisors and commodity pool operators. Instead, these 192 pages of densely-worded legislation created an international uproar due to the CFTC’s efforts to curtail leverage limits to historic lows....show more
With continued volume growth in retail foreign exchange (FX) trading showing little sign of abating, banks and brokerages increasingly have to deploy and ramp up cutting-edge margin trading solutions to efficiently manage their retail FX customer positions, retain and win new business and stay on top. Roger Aitken canvasses leading margin FX vendors to gauge the current state of play....show more
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Global regulation of the financial services industry is a hot topic. Following recent developments and disasters in the economies of Europe and the US, the eyes of everyone, from those directly involved in the markets, to Joe Bloggs on the street, are focused on who oversees what, why and how. Heather McLean discovers why the foreign exchange brokerage market is subject to increasing scrutiny and new rules....show more
Forex ECN platforms sound in theory like the ultimate utopian environment for trading. They can provide a place where orders are matched in real time in a collective bubble of liquidity provided by each of the market’s participants. However, as Heather McLean discovers, there is more to the world of the ECN than meets the eye. ...show more
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With the advent of Apple's iPhone, the entire mobile industry changed. From having mobile handsets to make calls on and send text messages, users were able to use their mobile device to access the internet, download applications for both work and play, and discover new ways of doing business and staying in touch with each other. Communication has entered a new era thanks to Apple's development, as every other major handset manufacturer quickly followed suit and began developing new ranges of Smartphones and launching application stores, while network carriers bundled data packages onto voice and text tariffs as end users became more familiar with the mobile web....show more
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The Internet has provided the means for an increasing multitude of people to trade the forex market. In addition to facilitating their ability to trade foreign exchange, the Internet has also made possible a growing variety of automated forex trading system and forex signal generation software programs. ...show more
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