THETRADETECHFX DAILY from the floor markets forward for electronic execution . We think this creates increased ability for more clients to trade these markets , which in turn creates better overall liquidity and ultimately tighter pricing as competition grows . The success of electronic execution across all asset classes has taught us that if we push boundaries into new areas of electronic execution , opportunities open up for more currencies and greater diversification of product .
How can investment in technology improve execution results ? I feel that the improvements in execution results really come from giving traders the tools that satisfy their curiosity – it ’ s not just about executing existing flow more quickly .
If traders are equipped with the tech tools that give them greater insight into their trading behaviours , and how they approach their markets , then they ’ ve got power to truly innovate in ways they haven ’ t before . We believe it facilitates opportunity-spotting in unusual markets ; the stuff that delivers real alpha to clients .
Another example is improving trade automation . Many markets are , of course , fully automated . But it ’ s important to think about efficiency of automation too , and someone working in the skills sweet spot I mentioned earlier - of trading , technology and data science - can improve the efficiency of what ’ s already automated , by ensuring that processes and models are always working optimally under changing market conditions . Access to fine grained market data , our own trading data , and a power Python environment with the right visualisation tools , provides the ability to introspect , which in turn helps power a virtuous cycle of constant improvement .
What steps should firms be taking to futureproof their FX trading desks ? I would point again to the interaction between tech , trading and data science / quant , as I think this is key . To be effective this triad of skills must be combined . Trading desks that fuse trading and market knowledge , are conversant in tech and have a sophisticated level of data science and quant skills will be the ones well positioned for the future .
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