e-FX technology: my understanding

Eric Xue2017 Jan 24

Interbank Market player: Thomson Reuters, EBS

- Top-level FX market, participants being larger international banks

- Trading Volume: hundreds of billions/day

FX Aggregators

- One single execution venue which provides a consolidated view of the market

- Known players: FXAll, 360T, EBS Direct, DealHub (acquired by IHS-Markit), Flextrade...

- Liquidity provider: mostly banks, but price takers could be institutional clients

- Trading volumes

- 04-Nov-2010: FXAll Reached Record $125 Billion Daily Trading Volume

- 12-Dec-2014: 360T sees record volumes topping $100 billion - FX Week

FX Aggregator

Internal FX distribution system

Post-trade: confirmation & clearing

PostTrade

- MarkitSERV FX broker affirmation

- DealHub

FX Trading - Computer replaces Human

- Margins are very, very skinny

- Electronic trading with high degree of algo/automation

Some observation on FX technology

- End-user platform: go Mobile!

Ideas on FX technology

- How can Amazon Alexa benefit FX technology product?

- Some bank is already doing it: customer with Alexa-enabled device can now check balances, find out when bills are due, and even pay bills through Amazon's virtual assistant

References

- http://www.fxweek.com/

- http://www.euromoney.com/Article/3396648/Big-data-comes-to-FX.html

- https://singledealerplatforms.org/

- https://www.bloomberg.com/news/articles/2014-02-18/fx-traders-facing-extinction-as-computers-replace-humans

- https://en.wikipedia.org/wiki/