CANBERRA: The electronification of FX is of huge benefit to clients globally who need to deal in the Australian time zone. Gavin White, Invast Global “Automated price making and electronic distribution of pricing is better suited to deal with the vagaries of Monday morning open and mid-week illiquidity during the Australian morning session, as much as it hurts an old trader to admit that,” says Gavin White, CEO of Sydney-based multi-asset brokerage and prime services provider Invast Global. Yet Vinay Trivedi, FlexTrade’s senior vice-president, strategic initiatives, suggests Australian banks have failed to capture a market share that reflects their status as natural Australian and New Zealand dollar market makers due to relatively weak eFX offerings.
He says Australian banks have only sharpened their focus on electronification in the past couple of years and that the impact has been much greater among business-to-business and business-to-consumer brokers. “Quite a few fund managers actively trade FX as an asset class, but accessing liquidity from banks is expensive,” says Trivedi. “Australian FX brokers have filled this gap by using end-to-end FX technology solutions to give clients access to eFX liquidity at a lower cost, help manage credit (against cash collateral), provide risk-management tools and help generate clients statements.”
