Competition in the foreign exchange market has never been closer or more heated.
As activity in the $4.7 trillion dollar forex market heats up, firms will be spending more on technology and electronic trading systems to grab market share and be competitive, according to a new report from Aite Group. Also, more venues are likely to emerge, further pushing the market along, the group added.
New electronic trading platforms have emerged over the last 12 months, directly challenging the positions of incumbent platforms and foretelling a brutal battle. The battle for supremacy in electronic Forex trading is going to heat up, Aite said in its latest Impact Report.
Based on Aite Group interviews with leading banks, FX brokers, various client segments, FX vendors, and FX execution venues, Aite Group senior analysts Javier Paz and Howard Tai and managing partner Sang Lee chart focus and profile 18 forex trading venues, provide details and evaluate the strengths and weaknesses of each.
Aite said the growth in electronic trading and more changes stem from an industry-initiated effort to grow fx as an asset class for both the institutional and retail investor. Forex players, much like their equity cousins, have provided more trading transparency, reduced latency on trading platforms and have accepted high frequency traders as part of the landscape.
Click here for the report.
