Online Foreign Exchange -- Let the Games Begin

December 20, 2000

Abstract

Boston, MA, USA,  December 21, 2000

Online Foreign Exchange Trading: Let the Games Begin  Report Published by Celent  

Internet-based trading of currencies currently only accounts for about 5% of total. However, Celent forecasts strong growth in this area.

In a new report entitled “Online Foreign Exchange: Let the Games Begin,” Celent Communications provides a comprehensive overview of the online foreign exchange market and profiles several of the top electronic FX trading systems, including:

Atriax FX Alliance FX Connect Currenex Matchbook FX EBS Reuters 2000

Major advances in technology, especially in online trading platforms, are not only helping to ease foreign exchange trading, but also allowing access to the market in ways never available before. Although online equity trading has grown significantly in the last three years, Internet-based foreign exchange trading has been far slow to develop. With turnover of approximately $1.5 trillion daily, foreign exchange is by far the largest, most liquid market in the world. Major foreign exchange players are becoming aware that not only can they improve trading services for clients with Internet-based systems, they can also save significant time and money in transactional efficiency gains.

According to Fritz McCormick of Celent, “The changes taking place in the foreign exchange market and advances in Internet-based marketplace technologies have converged to create a new breed of foreign exchange trading. This new phase will forever change the foreign exchange market and will eventually lead to a truly transparent, liquid market. However, this transformation will not take place overnight. We expect it will be at least four years before even half of FX trading moves to the Internet”

The report includes a comprehensive overview of the current state of the foreign exchange market, including a discussion about market structure and a list of the major players involved. Additionally, each of the main foreign exchange online platforms is profiled and closely evaluated to help determine potential winners and losers in this burgeoning market. A Table of Contents is available online.

Members of Celent Communication's Wholesale Banking and Institutional Securities & Investments research services can download the report electronically by clicking on the icon to the left.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

 

December 2000

Online Foreign Exchange: Let the Games Begin

Return to report Abstract

EXECUTIVE SUMMARY 3
INTRODUCTION 4
MARKET OVERVIEW 5
  Size and Structure 5
  Instruments and Currency Pairs 6
  Main Participants 7
ONLINE FX SYSTEMS 11
  MULTI-BANK SPONSORED 14
  Atriax 14
  FX Alliance 15
  SINGLE-BANK SPONSORED 16
  FX Connect 16
  INDEPENDENT ONLINE FX TRADING SYSTEMS 17
  Currenex 17
  MatchBook FX 18
  Others 19
  LEGACY INTERBANK TRADING SYSTEMS 19
  EBS 20
  Reuters 20
FUTURE TRENDS 22
  Full Transparency 22
  Integration 22
  Consolidation 23

 

        

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