Commentary

John Turney
Traders Magazine Online News

Foreign Exchange Infrastructure: Yesterday, Today and Tomorrow

In this exclusive to Traders Magazine, John Turney, Global Head of Outsourced FX at Northern Trust, discusses the evolution of the fx infrastructure and what is to come.

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Wall Street

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June 30, 2001

No Frills Routing

By Peter Chapman

Although not as glamorous as direct access, plain vanilla order routing is much in demand. Javelin Technologies, best known for its FIX engines and its gateway to the floor of the New York Stock Exchange, debuted order routing technology intended to help sales traders, at the SIA Technology Management Conference and Exhibit. Jav-Trader is a lightweight front-end that permits money managers and financial advisors to send their orders over the Internet to their sales traders.

Orders flow into the Jav-Central service bureau where they are rewritten in the FIX protocol. From there, they are routed to brokerages over the networks of such third party providers as TNS or Radiance.

Javelin's John Petschauer said the service will allow sales traders to cut down on the routine telephone calls and paperwork generated by the trades of 5,000 to 6,000 small institutions managing $300 million or less.

A member of this group cannot afford a full-blown order management system, but will often use a portfolio management system. As many as 4,500 use Advent's Access system, according to Petschauer, into which Jav-Trader will integrate. Javelin's bill will be paid by the brokerages which may provide the service to their customers through soft-dollar arrangements.