StreamBase announced the results of its FX Trading and Technology Trends in 2010 study. Over 80 participants who are actively trading FX at hedge funds, banks, and asset management firms took part in the annual study over several weeks.
“The survey results are in line with our recent report on high frequency trading in FX indicating the increasing demand for adoption of electronic trading,” said Sang Lee, co-founder and Managing Partner at Aite Group. “The fragmented markets and the need to source multiple liquidity pools simultaneously have underlined the importance of developing next generation trading infrastructures through the implementation of low latency technologies amongst different FX players.
Key findings of the StreamBase FX Trading and Technology Trends in 2010 report include:10% increase in use of algos for FX trading from 2009Over 25% of participants say their current FX aggregation systems needs improvement35% of participants plan to change or add electronic FX venuesNearly 50% of participants want to use FX aggregation as the basis for automated trading decisions56% of participants say robust and easy to integrate technology is the most important criteria for choosing an electronic FX platform
60% of participants are interested in learning more about CEP the most popular areas of interest got CEP in FX are the identification of trading opportunities, order placement and price improvementThe opportunities in event driven trading in FX are just beginning to be explored; many market participants realize the need of efficiently handling market data and analyzing microstructures, said Erik Lehtis, President of DynamicFX Consulting. The ability to aggregate FX liquidity across multiple venues has become the basis requirement for many FX trading firms; we are investing further efforts in developing complex strategies such as crossing different currency pairs that are related by cross rate to stay on top of the curve.
The ability to rapidly iterate FX trading models and quickly add new sources of liquidity is vital to staying competitive, said Richard Tibbetts, Chief Technology Officer at StreamBase. In 2003 you could have started from scratch with C++ but now there is just no time for that; CEP is just a better way to build todays FX trading systems.
Results from the StreamBase FX Trading and Technology Trends in 2010 survey were discussed by a panel of FX industry experts including Erik Lehtis, President of DynamicFX Consulting; David Poole, COO and Principal, ClientKnowledge; Dave Reid, Director FX Prime Brokerage, Citi; Richard Tibbetts, Co-Founder and Chief Technology Officer, StreamBase. Nasir Zubairi, former Product Manager of Algorithmic Trading and E-commerce Solutions, RBS, moderated the panel.
D.C.