With Australasia increasingly being seen as a hotbed of innovation with respect to e-FX and Richard Willsher sets out to explore in what ways this region is set to see further growth in the use of electronic trading by all FX market participants.
The countries of Central and Eastern Europe (CEE) are often characterised as emerging markets. Yet this masks a two-speed region where electronic foreign exchange trading is common and well developed in some local markets and less so in others.
By Mats Olausson - chief emerging markets strategist and Magnus Lilja, head of FX and emerging markets sales at SEB
Four hi-tech economies, three niche but liquid currencies and a number of banks and service providers competing tooth and nail to gain customer business, make the Nordic countries an intriguing case study in e-FX trading.
Rapid growth and technical change are continuing to drive electronic foreign exchange trading in China and South East Asia. The worlds biggest technology providers, banks and market makers are all active in the region, beefing up their capabilities and many hiring new staff. At the same time regional banks and brokers are rushing to offer more sophisticated technology to their customers. In the meantime they all have their eyes on China so that theyll be ready for any significant changes that could open up the worlds most populous market and soon-to-be worlds largest economy.
Electronic foreign exchange trading made a slow start in the Middle East. Take up is now well advanced in some sectors and some countries, though a lack of infrastructure, varying degrees of regulation and local civil and political disturbances paint a mixed picture across the region as a whole.
Global trade, local politics and regulation are the factors that most influence electronic foreign exchange trading in Latin America, while south of the US border the market is as rich and diverse as the countries that comprise the region.
Richard Willsher discovers how trade and telecommunications infrastructure shape the current foreign exchange market in Africa as a whole and although South Africa is the continents leading electronic trading market, he outlines why we can expect to see growth in e-FX taking place in many other countries within the continent over the next few years.
South East Asias increasing economic prosperity is driving growth in the regions foreign exchange trading activity and, as Richard Willsher discovers, the regions electronic FX trading capabilities have accelerated even faster.
Canada consists of ten provinces and three territories and is one of the worlds wealthiest nations. It has a very diversified economy much reliant on natural resources and trading relationships with overseas countries, particularly the United States. Heather McLean explores the current FX trading environment within this huge country and how leading Institutional and Retail FX providers are meeting increasing demand for electronic FX execution solutions amongst their clients.
Gerry OKane looks at growth in e-FX throughout the Middle Eastern markets and how resistance to electronic systems is changing rapidly in the fast shifting economic and socio political geography of the region.
On 22 September 2009, the credit rating agency Moodys became the last of the big three rating agencies to grant Brazil the coveted investment-grade status, clearing the way for deep pocketed US and European institutional investors to look towards the country as a source for generating higher yield returns from investment portfolios. At the same time Brazil has also been seeing rapid growth and demand for FX e-commerce and e-trading services from a wide variety of traders, investors and cash management professionals. Heather McLean sets out to discover what factors are driving demand for e-FX in this Latin American powerhouse.
Over the past three years the growth of the online foreign exchange market has become spectacular to say the least. With more than $1.5 trillion traded daily there is still room for growth as the number of providers offering this service increase. Southern Europe is behind other areas of the globe in terms of eFX, mainly due to a slow economic transition from traditional sectors such as agriculture, industry and construction. FX has been largely predominant in the Anglo-American regions, but is now starting to take off in southern Europe as these countries develop their financial markets and instruments and start to throw research and development cash in the direction of FX.
China is the word on trembling lips across the world. This enormous market is opening up and expanding, getting online and learning how to take advantage of its mass and its closeted economy, to make money on an ever-grander scale. From the eFX perspective the country has just started making tentative inroads. The Chinese government has a strong grip on the countrys finances and information circulation. It is learning to relax that hold and to allow electronic trading to take place, yet this is just the beginning of that process; for eFX to really be able to take off in China, the government needs to place more trust in people and systems.
Heather McLean interviews major banks, technology vendors and buy-side players in the region.
Heather McLean interviews major technology vendors and FX buy-side and sell-side players in the country.
Heather McLean investigates the uptake of FX e-commerce services and growth of online FX trading in Australia
Heather McLean interviews major technology vendors and FX buy-side and sell-side players in the region.
Heather McLean profiles e-FX within the country.
Heather McLean examines e-FX within the region.
Heather McLean examines e-FX within the region.
Andy Webb looks at eFX within the region.
In the first of our new regional perspective features, Andy Webb reports on e-FX in France.