In April this year, Traiana and CLS announced a joint venture to provide trade aggregation services to participants in the over-the-counter (OTC) foreign exchange markets
The aim is to
reduce operational risk, rationalise and consolidate legacy
back-office processes, and reduce post-trade costs in the global
foreign exchange markets, at a time when volumes have increased
substantially
Jesse Drennan, Director Product Strategy, Traiana,
explains why post-trade processing in FX demands reinventing
The last five years have been marked by an unprecedented explosion in foreign exchange trading volumes, and even with recent reports showing a decline in volumes from certain segments, the impacts of higher volumes are still felt across the industry
Furthermore, reports make it clear that the transition
of foreign exchange into an asset class by a widening group of
institutional and retail investors is here to stay
The growing
volumes from these new segments are a measure of the change, but
underneath the volumes is a richer story of the transition of FX
into a mature asset class