Picture1Recently, Risk.net summed up the role of technology providers in the world of FX.

The proliferation of electronic trading venues – especially in the FX market has increased the potential for fragmentation. Good news!  With change, comes opportunity.

Already, technology providers are stepping up and developing solutions that address market participants’ need to connect to key trading venues around the world. Providers are getting smart and creative to answer the need, particularly by utilizing colocation and aggregation to help clients reduce costs as well as increase performance and agility.

As the number of trading venues increase, it’s becoming intractable for FX participants to keep up which exchanges they should connect to and understanding the nuances of each connection.  Aggregators have also emerged to address the challenge creating some nice benefits for FX participants including:

  1. Access to and proximity hosting at leading exchanges around the world;
  2. High performance with lower latencies and greater reliability and scalability;
  3. Continuous and hassle-free technology refreshes;
  4. Ease-of-use through supplier consolidation and reduction of complexity; and
  5. Lower costs via shared infrastructure.

A call to FX participants: Figure out what you need – and where and when you need it.  Then, find an experienced, strategic provider who can keep you ahead of the competition.