As markets evolve technology has always played a vital role keeping up with regulation and profitability.
Coming from a listed markets experience and background it has always been very important to provide our customers with a technology platform that would give them value added services and at the same time been compliant with the always changing regulation and compliance component.
The words reliability, access, latency and colocation are now a day to day part of the FX world. Which is heavily investing in technology on a constant changing environment.
Even though the FX world is a different animal, as it is very fragmented and not that regulated you have to always keep a close eye in technology and make sure you associate yourself as a client and a broker with the firms who are on top of their technology game.
One of the key factors to look at is that technology would not only give clients added value but it would also have the broker providing the technology services to be completely committed to their game. Once a broker decides to invest in technology there is no backing down, it will always have to find added value, new services, new vendors and new structure.
As the market evolves and the key components of access, reliability and latency become FX daily themes brokers will have to make the comparison among different solutions, brokers and platforms.
Technology promotes sophistication among all the players, clients and brokers step up their game once they understand the impact of technology and the trends. Brokers on one side, if they are serious, would spend time , money and resources setting up their whole infrastructure (servers, applications, aggregators, feeds, liquidity, etc) and clients on the other side now have plenty of information about technology trends.
As technology evolves so do we, investors and brokers, markets and vendors, platforms and algos. We are all part of the moving FX market place and as a broker it is always important for me to be associated with a broker who is committed to their technology services and is looking for the next big thing.
STP (Straight Through Processing) was always a target for me as a Chief Operating Officer. The integration of the trading cycle – pre-trade, trade and post trade technologies are key for an efficient broker dealer.
In the FX world now – everything matters – the integrations and platforms that enable clients to open accounts and fund them – the trading platforms and algos that give them added value – the reliable service and access to the market place – the liquidity aggregators that control the spreads.
So at the end of the day – technology matters because it has an impact in the bottom line.