e-Forex-Nov-23

More documents

Recommendations

Info

TRADERS WORKSHOP Achieving and maintaining an ultra-low latency FX trading infrastructure “Achieving ultra-low latency requires a holistic approach that meticulously optimises each step from data transmission to execution” Alexander Culiniac Ultra-low latency trading can be defined as a system capable of processing data in nanoseconds, compared to standard low latency which is measured in milliseconds or microseconds. Bridging this gap is expensive, though, and requires specialised hardware and software. “It is not just about going faster; it’s about designing a sleek, custom built engine capable of conquering those tiny fractions of time that make all the difference in high stakes trading,” explains Ariel Silahian, Director of Electronic Trading at SiS Software Factory. You can pay to be as close to the exchange as possible, but with equitable access you can only get as close as other participants states Gordon McArthur, CEO of Beeks Group. “If you have fixed latency budgets then your competitors generally do as well, so ultra-low latency is about ensuring all other elements of your trading system are as fast as possible,” he says. The number of participants in the market at different stages of implementing ultra-low latency limits the benefits since interactions between two parties will only be as fast as the slowest participant observes Alexander Culiniac, CTO/ Managing Director of the commercial banking & payment product business group at SmartTrade Technologies. ATTENTION TO DETAIL IS VITAL “An FX trading platform must contend with various latency types, such as network, propagation, processing, and software-related delays,” says Culiniac. “Achieving ultra-low latency requires a holistic approach that meticulously optimises each step from data transmission to execution.” The primary users of these systems include high-frequency trading firms, hedge funds, and market makers, although as the value of improved performance rises relative to infrastructure costs, firms across the sell-side and buy-side are looking to achieve ultra-low latency. Silahian notes that the decentralised, fragmented nature of the FX market presents some specific challenges. “Unlike equities, FX is more about exploiting delayed prices across different platforms,” he says. “Execution speed is generally a little slower - even the fastest margin FX broker isn't as quick on the draw as Nasdaq. In addition, looser regulation in FX leads to protective measures by market players against high speed trading strategies, such as speed bumps or last look.” “The primary protocol for FX market data and trading is slow, lacks traceable timing, and is peer-to-peer rather than multicast observes McArthur. “Some FX markets have started to offer lower latency multicast market and binary trading protocols, but these are still in the minority,” he says. “With no single source, it takes a lot more time and effort to apply the methodical approach to ensuring latency-tuned access between participants.” Specific factors that impact latency include: • Slow infrastructure (servers/network cards/switches) • Additional infrastructure adding hops (firewalls, layers of switches) The decentralised, fragmented nature of the FX market presents some specific challenges • Physical distance from trading counterparties 70 NOVEMBER 20<strong>23</strong> e-FOREX
Next level financial markets A new name. Years of experience behind it. Take Your Business to New Heights Liquidity Risk Management Trading Platform Technology Data Solutions Service available only to Professional clients and varies per jurisdiction Trading involves significant risk of loss Award Winning Liquidity www.finalto.com Find out more NOVEMBER 20<strong>23</strong> e-FOREX 71
Page 1 and 2:
transforming global foreign exchang
Page 3 and 4:
Welcome to e-FOREX transforming glo
Page 5 and 6:
Turning Payment Flows into Revenue
Page 7 and 8:
Institutional EMBARK POWERFUL LIQUI
Page 9 and 10:
NOVEMBER 2023 e-FOREX 9
Page 11 and 12:
Evolving with the Market Added Func
Page 13 and 14:
Accelerate time-to-trade with LPs &
Page 15 and 16:
RECENT EVENT give a few more takeaw
Page 17 and 18:
to building trusted partnerships Fl
Page 19 and 20: NOVEMBER 2023 e-FOREX 19
Page 21 and 22: TRADING OPERATIONS market risk back
Page 23 and 24: Welcome to the next generation of b
Page 25 and 26: Forward FX interpolation… …sti
Page 31 and 32: TRADING OPERATIONS robust, standard
Page 33 and 34: REGIONAL E-FX PERSPECTIVE The MENA
Page 35 and 36: SAVE 10% FREE FOR BUY SIDE SAVE 10%
Page 37 and 38: EMERGING MARKET PAYMENTS, OPTIMISED
Page 39 and 40: REGIONAL E-FX PERSPECTIVE be an ele
Page 41 and 42: THE e-FOREX INTERVIEW Eric, you hav
Page 43 and 44: THE e-FOREX INTERVIEW Fred Allatt (
Page 45 and 46: THE e-FOREX INTERVIEW OUR SINGAPORE
Page 47 and 48: THE e-FOREX INTERVIEW (From left to
Page 49 and 50: FX ON EXCHANGES There are two clear
Page 51 and 52: YOUR PIONEERING PARTNER IN INSTITUT
Page 55 and 56: Your gateway to the global FX ecosy
Page 57 and 58: ASK A PROVIDER When it comes to FX
Page 59 and 60: SPECIAL REPORT Treasury automation
Page 61 and 62: Optimizing efficiency in post-trade
Page 63 and 64: TRADE SMARTER, FASTER AND SAFER Ref
Page 67 and 68: NETWORKS, HOSTING & CONNECTIVITY cl
Page 69: TRADERS WORKSHOP NOVEMBER 2023 e-FO
Page 73 and 74: TRADERS WORKSHOP “Rapidly changin
show all

e-Forex-Nov-23

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?