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Building a Modern FX Platform

07:00 December 19th 2016 in Media, Videos

Building a Modern FX Platform

Rick Schonberg, global head of product for trading and clearing and the North American head of trading solutions at Currenex, talks to Galen Stops, deputy editor at Profit & Loss, about the launch of X2 trading platform.

In September Currenex launched X2, a new trading platform based on HTML5 technology that was designed in response to the changing liquidity profile of the FX market and the evolving requirements of institutional FX traders.

The new platform offers numerous different modalities of trading, which begs the question of whether having so many options for execution methods makes it harder or easier for institutional clients trading FX?

“In some ways it’s easier and in some ways it’s harder,” explains Schonberg, who describes the number of execution choices available to these traders as “mind numbing”.

He says that many institutional clients, such as corporate treasurers, used to trade FX by doing what was effectively a telephone request for quotes (RFQ) to a handful of banks and then automating that into a GUI on a multi-bank platform.

In contrast, Schonberg says that the tools available to treasurers today provide an opportunity for them to add value in their FX execution, enabling them to make their role more dynamic rather than simply conducting an RFQ and trading on the best up-front price. But despite this, he notes that different firms have very different requirements from an FX trading platform.

“I’ll go to some customers on the corporate side who do RFQ, trade in competition, they’re very efficient and all they talk about is workflow, that’s what they care about and that’s perfect. They’re not so concerned about all the different modalities of trading. 

“Whereas you go to a more macro shop and they want to know all the details, they want to know what you recommend, they want to talk algos, they want to talk efficiency and in that case all those choices help them do their trading roles better,” says Schonberg.

He also discusses some of the new features and functionalities on the X2 platform and how it operates alongside Currenex’s Classic platform.

You can watch the full interview here: