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TRADING OPERATIONS<br />
Nicholas Pratt examines how the role of the FX liquidity manager has evolved and in<br />
what ways technology will be a critical component in the next generation of FX Liquidity<br />
Management tools and services<br />
FX Liquidity Management continues to<br />
be a challenging and complex task as<br />
more trading styles, execution venues,<br />
platforms, liquidity providers and<br />
market makers enter the market. This<br />
is not a new development. A cottage<br />
industry of liquidity management<br />
providers and services has emerged<br />
as a result, designed to give market<br />
participants a chance to keep up.<br />
The question is whether the solution<br />
providers are able to keep up and<br />
where both the technology and trends<br />
in liquidity are heading.<br />
“FX Liquidity Management is likely to<br />
remain complex but new technology<br />
is helping more participants to access<br />
solutions that give them a competitive<br />
advantage as they manage access<br />
to the largest and most electronic<br />
financial market,” says Stephen Totten,<br />
director of quantitative analysis at<br />
oneZero.<br />
ARTIFICIAL INTELLIGENCE<br />
He highlights the potential impact<br />
of artificial intelligence (AI). “AI is<br />
set to transform a sector that is<br />
already benefiting from sophisticated<br />
execution algorithms and increasingly<br />
quantitative analysis for both pre- and<br />
post-trade liquidity management,<br />
for example. And traditionally voice<br />
areas in FX, such as NDFs and swaps,<br />
are also seeing a huge amount of<br />
innovation from new entrants and<br />
JULY 20<strong>23</strong> e-FOREX 17
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