E-trading to boom
(25 March 2008 – Global) A global survey by CME group has predicted that by 2010, more than 80 percent of cash business will be executed electronically.
The survey indicates that electronic trading will growth faster than previously expected and will drive the growth in FX markets.
The rapid growth is primarily due to a growing focus on electronic trading, risk management and cost controls.
Respondents to the survey indicated that, as with many other new technologies, risks were a significant concern.
Indeed, 72 percent of bank survey participants cited counterparty risk as their biggest concern, while settlement risk was the second most significant concern, with 64 percent.
CME, in conjunction with Reuters, operates a centrally-cleared platform for anonymous e-fx trading - FX MarketSpace. CME said that centrally-cleared platforms eliminate counterparty and settlement risks.
The survey of 933 market participants, which was conducted by ClientKnowledge, included 333 banks, 333 money managers and 267 'non-traditional' money managers such as including hedge funds and commodity trading advisors.
The rapid growth is primarily due to a growing focus on electronic trading, risk management and cost controls.
Respondents to the survey indicated that, as with many other new technologies, risks were a significant concern.
Indeed, 72 percent of bank survey participants cited counterparty risk as their biggest concern, while settlement risk was the second most significant concern, with 64 percent.
CME, in conjunction with Reuters, operates a centrally-cleared platform for anonymous e-fx trading - FX MarketSpace. CME said that centrally-cleared platforms eliminate counterparty and settlement risks.
The survey of 933 market participants, which was conducted by ClientKnowledge, included 333 banks, 333 money managers and 267 'non-traditional' money managers such as including hedge funds and commodity trading advisors.
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