PrimeXM CEO, Cristian Vlasceanu, recently spoke to eForex about fx liquidity, risk and technology services in the APAC markets.
One of the key points discussed were the challenges fx brokers face in the APAC region with the main liquidity sources being in London and New York. As Mr. Vlasceanu pointed out, co-locating trading platforms and execution engines close to liquidity providers can facilitate connectivity and help brokers achieve the desired stability.
“The challenge is to optimize the connections from traders in the APAC region to the trading environments in London and New York, for lower communication times and most importantly stability of the connections.”
Mr. Vlasceanu also noted that another big challenge for FX brokers is how they handle large trade sizes coming from clients. When evaluating liquidity partners, brokers need to take into consideration the depth of liquidity which they are able to offer. Having sophisticated aggregation technology can help in large order execution and reduce slippage which increases the chances of big orders being filled.
Additionally, Mr. Vlasceanu observed that brokers are becoming increasingly interested in gaining access to their setup which allows them to manage, monitor and make customizations in real-time.
“Having this access level is essential to the brokers’ ability to proactively protect their system and make any changes as required.”
One of the biggest risk challenges brokers in the APAC region are dealing with is also the increased numbers of DDoS attacks taking place in the region.
“DDoS mitigation services and the overall security of the trading environment is a must for any provider catering for brokers in this region.”
Mr. Vlasceanu also talked about the ability of PrimeXM’s technology to overcome connectivity issues between China and the rest of the world.
“To tackle this, we have established dedicated lines between Shanghai and London, linking the clients to the trading engines. Additionally, we are continuously working on optimizing the communication as much as possible, which is a constant ongoing process. While ensuring stability, this also helps to greatly reduce communication latency, which is very important as well”
*this article was first published in e-Forex