FX Aggregation
Johann (Hansi) Leikert
Manager Trading Solutions Europe East
Phone:
Email:
+43 1 53112 283
johann.Leikert@thomsonreuters.com
Rovinj, May 2012
AGENDA
– Challenges for Banks
– Trends in FX Trading
– Thomson Reuters Dealing Aggregator
– What´s new in Reuters Matching
What are the challenges for Banks in FX?
• Price Aggregation
– Lack of industry-wide consolidated tape
– Own developed solution or third party vendor
– First step for an winning automated trading operation
• Managing multiple trading venues
– Different locations and built-in distance latency
– Varying frequency of price distribution
– Lack of price normalization
– Lack of consistency across venues that present depth of book
– Differences in tick size and order types
3
FX Trends
Market Fragmentation ECNs
FX Traded In High Frequency
FX Traded Electronic
FX Algo Trading
FX Trading in the 80´s
FX Trading in the last 10 years
Where is the best price for me?
FX Trading in 2012
Thomson Reuters Dealing Aggregator
• Market Aggregation
• Liquidity Management
Dealing Aggregator
consolidates these
destinations and
sends orders to
them
• Execution Management
• Position Management
• Algorithmic Trading
Example Destinations
Reuters
EBS
Barcap
BBG
Lava
DB
Currenex
CS
• Deployed or Hosted
• Integration to Sales Channels (RET)
Hotspot
FXall
CME
9
What´s new on Reuters Matching
• New Matching API
• New Matching GUI with depth
of book this year
• International Matching for
Croatia
• Thomson Reuters is Number
One FX Liquidity Pool
– $ 137 billion per day