Creating Sustainable Trading Relationships
Ever since the COVID-19 pandemic came into our lives back in the early part of 2020, industries all over the globe have been scrambling to adapt and evolve. Carrying out business in this new world brings with it significant challenges this is true, but also a lot of opportunity.
New 2021 research by WBR surveyed 100 heads of FX Trading and from buy-side and sell-side firms across Europe, in an effort to discover what challenges the COVID-19 crisis had brought to their corner of the industry and what they were doing to fight back against the tide.
The report Assessing New FX Market Structure Trends and Interacting with the Sell-Side to Create Sustainable Trading Relationships is now available for download – free of charge – so let’s dip in an see if we can’t disinter one or two interesting titbits.
The modern FX trader has much to do and little time to do it in, so it’s not particularly surprising to learn that only 10% of organisations are monitoring trade execution performance on a daily basis. This is one of those situations which can be greatly assisted by bringing more automation into the industry.
With powerful AI technology constantly monitoring trade execution performance, traders can receive updates on an hourly basis, rather than weekly or monthly as they are right now. This will give them the agility necessary to respond to changing situations and come up with the best possible strategies for the current climate.
The two recurring factors which really jump out from these answers are the challenges of needing to upgrade software constantly and the associated downtime and expense, and the challenges associated with data.
The pandemic has really brought home the need for robust technological solutions. With many businesses now permanently moving to a work from home model, there is a need for, among other things, remote working solutions, and new security software. Where data is concerned, fragmentation slows down access and read speeds, and leaks can lead to a range of problems – both from a business and regulatory standpoint.
Data is serious currency in modern business and traders would do well to make sure they have the capabilities in place to effectively manage its use.
An algorithmic wheel [algo-wheel] refers to a piece of software which takes automated trade initiation, algorithmic analysis, and manual intervention, and combines them into a single system platform. These composite platforms can then be deployed to reduce the costs and increase the speed of execution associated with FX trading. On top of this, algo-wheels also allow traders to place simultaneous orders from multiple market venues and take advantage of liquidity providers across various currency markets.
With the increased efficiency and reduced costs of algo-wheel enabled FX traders, it’s no wonder those in the know are predicting their use to become ever more ubiquitous as we move through the final quarter of 2021 and beyond.
Final Thoughts
As we move into the post-COVID world, the FX trading business is going to continue to evolve and develop to meet the challenges of this ever-shifting landscape.
Make sure you are fully up to speed with what comes next and download the full report Assessing New FX Market Structure Trends and Interacting with the Sell-Side to Create Sustainable Trading Relationships today.