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SOURCE e-Forex Magazine
- Editor-in-Chief Charles Jago sees more access and transparency for FX Traders
- The Financial Cloud - a technology that brings FX egalitarianism to new heights
NEW YORK and LONDON, July 24, 2014 /PRNewswire/ -- Access and transparency are the big trends to watch in foreign exchange with the July edition of e-Forex magazine (www.e-forex.net) featuring progressive Swiss banker Alain Broyon, the outlook for the financial Cloud, and latest observations by Editor-in-Chief Charles Jago.
"We have looked at suggestions for reducing the potential reputational damage to FX by the disruptive high frequency trading behavior of some market participants. In the same way that drivers who are caught speeding are held responsible for their actions, as opposed to the cars they drive, the focus needs to be on eradicating disruptive trading behavior and the intent behind it, rather than the technology, writes Jago in his editor's letter.
Most observers see the Cloud as contributing to greater access to markets and liquidity. In an article by Dan Barnes titled, FX traders see sunshine through the Cloud, Jubin Pejman, managing director of FCM360 explains that while security worries are fading, "No public cloud is secure. "Rackspace, Softlayer and IBM - have huge market share, but don't have what you need in financial services…. Our Cloud is private, no one else has access, and we don't commingle data…." FCM360 (www.fcm360.com) is a worldwide provider of trading system hosting and connectivity.
Pejman added, "FCM360 defines its Cloud as a collection of different data centers around the world with different types of connectivity and computing options -- a defined set of components that you can select to provide a solution."
In the highly distributed and fluid foreign exchange markets, a highly distributed technology model carries obvious advantages. Nevertheless placing such important assets in the hands of a third party has not always been a comfortable choice for FX trading firms. This is rapidly changing according to authorities quoted in the article.
When it comes to transparency, Dukascopy Bank (www.dukascopy.com) sheds light on the dark arts for investors of all size and stripe. From the July edition: "Dukascopy may be a Swiss bank but its approach to its foreign exchange brokerage business is anything but conservative. The Geneva-based company began life in 1998 as a software project launched by a physicist, Dr. Andre Duka. This meant that technology was part of the firm's DNA."
Alain Broyon, Dukascopy CEO, tells e-Forex readers, "We have developed a unique trading environment. All clients see the same data feed [and] they see the same price. Whether you have deposited one thousand or one million, you are in the same trading environment and you have the same right to consume the liquidity or to provide it in this market. This … is one thing that makes us different."
Broyon adds, "We have aggregated the liquidity of the top 25-30 banks in the world, meaning that we are now one of the biggest aggregators of liquidity. We give this to clients on an equal footing. Clients pay a small commission and the bigger the client the less they pay and this is fully transparent and totally open. This is quite different from the other ECNs."
e-Forex Magazine is published quarterly in London and is available in Flash at: http://content.yudu.com/Library/A2wh36/EForexJuly2014/resources/index.htm?referrerUrl=
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