Why Is Pricing So Important?

Written By Nicola Clifton

Fintech Focus TV

 

Timeframe

00:00 - 01.14

Section

Early days of eFX pricing: Liquidity producers vs consumers 

Why is latency arbitrage an increasing problem for brokers?

  • Rise the of the aggregator

  • Spreads have compressed

  • No barrier to entry

  • Machine led arbitrage

  • Any weakness in pricing is targeted

01.14 - 03.08

03.08 - 05.30

What impact can well-crafted EAs have on brokers?

  • Trading in large groups to push market direction

  • Exposes pricing that is slow to update after large moves

  • Creates opportunity for arbitrage

  • Very damaging for brokers

What can brokers do about it?

  • Identify trading patterns in realtime

  • Use technology to manage behaviour

 

05.30 - 05.44

Nicola Clifton
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