e-Forex-July-23-HighRes-SCREEN

Quest for the best: Exploring Singapore’s increasingly attractive e-FX trading ecosystem
“Today, Singapore’s status as an FX hub is facilitated by the
presence of leading FX firms that have launched trading
engines with Equinix’s SG1 data centre,”
text-based algo tool that makes trading
easier for clients trading both OTC and
exchange-traded products.”
CATERING TO REGIONAL BUY SIDE
REGIONAL E-FX PERSPECTIVE
Gareth Bridges
an example of how technology is
playing a role in trade facilitation.
“Traditionally execution traders
have had to ask levels or “indicative
pricing” from their sales coverage
to gauge potential interest and axes
for less liquid business they must
execute,” he says. “The increasing
sophistication of eFX pricing means
that eCommerce can function as a
window into the broader franchise
and an entry point for dialogue about
larger or more complex risk.”
Despite the rise of e-trading, Rymill
notes that effective service tailors itself
to client needs. “In our e-FX business,
we partner hand-in-glove both with
our clients externally and traditional
voice sales coverage internally,” he
says. “To facilitate a high service level,
it’s essential to hold regular dialogue
with clients of all sizes about their
execution activity and how it relates to
both their investment and execution
processes.”
“Especially how eFX and algo
execution fit into those processes
to the benefit of asset owners,” he
continues. “Our voice sales make sure
eFX sales are at those meetings so
that our clients have someone who
can speak fluently to the complete
eCommerce offering.”
Lee points out the broader technological
advances are finding their way into
client demands and service offerings.
“We have seen a general rise in demand
for execution platforms with embedded
AI,” he says. “Another feature that is
being developed in the industry is a
DEMANDS
Improvements in technology tend
to spur new demands from market
participants, particularly from the buy
side. Proximity to an ecosystem is a
top priority, Bridges says, something
Equinix solves. “Equinix is home
to the world’s largest multi-asset
class e-trading ecosystem,” he says,
“creating the means for major banks,
FIs, and retail FX brokers in Asia-Pacific
to interconnect on a fast, secure, and
reliable platform.”
“The depth of liquidity partners and
working with the right technology
partners is essential to long-term
success for buy-side firms,” he
continues. When asked what attributes
buy side firms must look for, Bridges
says, at a minimum “...technology
partners must offer reliable, capable,
and scalable solutions that can evolve
in line with customer needs, enabling
them to effectively meet rapidly
changing demands of modern trading
environments.”
Meanwhile Rymill notes that
enhancing client experience is a top
aim at State Street and clients tend
to drive innovation and demand as a
result. “I find some APAC clients are
still adapting or establishing exactly
what best execution means for
them,” he says. “It could be driven
by the consolidation in the asset
management industry in Australia,
or APAC-based alternative asset
managers beginning to think about
ideas that are more traditionally
associated with the real money
community.”
Low latency has proved a critical building block for Singapore’s e-FX growth
“Approaching these conversations
with clients through the lens of a
custodian,” he continues, “where
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