Cloud, multi-dealer platforms, mobile, and APIs to lead FX tech revolution

Rick Steves

Respondents signaled the expected shift to the cloud is driven by lower cost of technology, ease of integration, automation, ability to customize, and accessibility for distributed workforces.

Integral, the Palo Alto-based FX technology company, has published the results of a survey about how the $6 trillion foreign exchange (FX) industry expects to navigate the current tech revolution.

Surveying heads of FX trading and senior FX managers at financial institutions across Europe, North America, and the Asia Pacific, the study found that cloud computing is about to be adopted by nearly the entire industry over the next five years.

Findings showed that 28% of respondents will operate their FX technology completely in the cloud within the next five years compared to the current figure of 2%. An additional 41% will be using some combination of cloud and on-premise technology compared to 24% at present.

Respondents signaled the expected shift to the cloud is driven by lower cost of technology, ease of integration, automation, ability to customize, and accessibility for distributed workforces.

Distribution channels: Multi-dealer platforms and APIs take the lead

The survey found that 46% of participants expect multi-dealer platforms (MDPs) to see the biggest rise in FX trading in the next 12 months, followed closely by APIs at 33%, which are fed by an increased emphasis on relationship trading.

Mobile trading came third with 17%, and single-dealer platforms (SDPs), which once led the ranking, are now last with 2%.

“This interest in API trading underscores a trend toward institutions leveraging increased control over brand and distribution technology while maintaining lower operational costs through outsourced FX technology”, said the announcement.

“This past year has proven that the future of FX trading is highly dependent upon technology. It is no surprise that in the next five years cloud computing is projected to feature in the workflow of almost everyone surveyed”, said Harpal Sandhu, CEO of Integral.

“Looking ahead, we expect that the increased use of cloud will help market participants of all shapes and sizes perform their FX functions on a daily basis cheaper and more efficiently, and that time to market, customization abilities, and remote accessibility will continue to be necessary requirements of a sophisticated workflow.”

The trading industry has invested in single-dealer platforms (SDPs) as they replaced legacy portals. These fully integrated “one-stop-shop” platforms evolved from execution-only trading applications to those featuring sophisticated pre- and post-trade capabilities.

SDPs, however, have encountered difficulties adapting to their clients’ changing demands. Multi-dealer platforms address these challenge as they reduce risks by providing apps that can be developed internally using proprietary technology or externally by peers or other third parties using shared technology. Plug-and-play apps improve the industry’s agility in meeting clients’ changing demands.

Read this next

Digital Assets

Masa and LayerZero: Bridging Blockchains for Data Sovereignty

Masa Network is poised to revolutionize the personal data landscape with its upcoming launch as a cross-chain platform, making it accessible on a variety of blockchains right from the start.

Digital Assets

Big Time Generates over $100M in Revenue since Preseason

Innovative game developer Big Time Studios announces that its highly anticipated free-to-play multiplayer action/MMO RPG Big Time, has generated $100M in revenue. According to the team, players transacted a total volume of over $230M, without selling a single token.

Digital Assets

Centralized exchanges are 10 times more popular than DEXs in Western Europe

Western European traders are found to prefer centralized exchanges over decentralized ones as CEX traffic outpaces DEXs by a factor of ten.

Market News

Stock Market Analysis: Is NVDA Losing Its Leadership?

Since the beginning of the week, the S&P 500 Index (US500) has seen a modest increase of about 0.58%, whereas NVDA’s share price has experienced a decline of approximately 3.8%. This recent divergence raises concerns among Nvidia stock investors — could it signify a loss of NVDA’s market leadership?

Industry News

ESG: Australian regulator wins first greenwashing court case against Vanguard

Vanguard admitted that a notable portion of the securities within both the Index and the Fund did not undergo the promised ESG scrutiny.

Fintech, Uncategorized

BitMEX integrates HALO from Solidus Labs for cross-market surveillance

“The recent approval of the Spot Bitcoin ETF has piqued the market’s interest. As a result of price volatility, the trading volumes for crypto derivatives have gone up substantially. HALO, with its advanced technology and crypto-native detection architecture, will enable BitMEX to smoothly and safely scale trade surveillance across its increased trading volumes and provide the necessary safeguards for new product launches.”

Reviews

IUX Broker Review

IUX, recently rebranded from IUX Markets, stands as a multi-asset Forex broker recognized for its regulatory compliance across various jurisdictions.

Industry News

Horizon Software rebrands to Horizon Trading Solutions

“Horizon Trading Solutions has seen accelerated global growth over the past year to meet the rising demand for our trading solutions and built-for-purpose technology offering. The choice to rebrand represents a key part of this development, while maintaining our heritage and history in the industry.”

Market News

USDJPY has surged to levels last witnessed in 2022. Should we consider opening a short position?

The recent resurgence of the US dollar has propelled USD/JPY to new heights, touching levels not seen since 2022. This surge comes against the backdrop of stable short-term yields and ongoing economic data that fails to signal a significant slowdown, prompting questions about the extent of current monetary easing measures.

<