: There seems to be so much research
available its becoming difficult to differenti-ate between one
service and other. What should we look for in our choice of online
FX research provider?
Ian Stannard answers questions about Online FX Research &
With Ian StannardSenior Currency Strategist at BNP Paribas.
It is true that there has been a huge expansion in the amount and
type of FX re-search available online (and by other electronic
media), as the internet opens up the potential to deliver more
research to a broader customer base. However, the internet also
provides the opportunity to target research more specifically to
individual cus-tomers needs, and some research providers are now
starting to utilise this potential. This has certainly been the
approach adopted by BNP Paribas, where the FX Dealer Portal allows
the customer to select and filter the FX Strategy research they
require, ensuring that the research they receive is the research
they need. Also customers can request the format in which they
receive the research.
: How easy is it for us to get a tailored
FX research offering as opposed to being overloaded with lots of
trade information which we didnt ask for and dont really
One of the major advantages of web based research is that it opens
the opportunity to provide customers with tailor made research.
Indeed, the ability to select specific aspects of research from the
broad range on offer is a powerful tool and one that is being made
increasingly available to customers. This is one area where BNP
Pari-bas FX Strategy has put a lot of emphasis. Indeed, the BNP
Paribas FX Strategy product is now fully web based which enables
the customer to tailor make their own e-mail alerts, which are sent
directly from the website. This ensures that the research the
customer receives is relevant and timely. Customisation of web
pages is also be-coming widely available and is a major part of the
functionality within the BNP Pari-bas Global Markets portal, which
provides cross market research capabilities, also covering bond,
interest rate and credit markets in addition to FX.
: We are a Fund manager looking for
fairly short term, live, research content coupled with very
specific trading strategies. Do any FX providers offer this degree
of cus-tomised product?
The internet provides the delivery channel making live interactive
research and con-tent possible to a broader customer base. Services
which had previously only been available internally to banks'
traders are now becoming more widely available to in-dividual
external customers. Many FX providers are now providing the ability
for customers to carry out their own research with the provider's
proprietary tools run-ning live over the internet. BNP Paribas for
example provides access to live com-ments from its strategists 24
hours a day, including specific trading strategies and
recommendations. The live daily trading strategies with P/L and
full track record is one of the most visited sections of the BNP
Paribas FX Dealer Portal. Live technical trading models and
charting tools are also provided, along with a comprehensive range
of quantitative models.
: We would like to get more cross-asset
class research information and economic data, particularly
correlation analysis of FX rates against other markets, to help us
with our FX investment strategies. Are there any cross-asset class
analytical tools available to help us achieve this?
Cross-market analysis is also far more available now as global
markets are seen as becoming increasingly integrated. This is
particularly true of foreign exchange as ac-tivity in fixed income,
equity and commodity markets have a significant impact on FX. Many
research providers offer research from across different asset
classes. At BNP Paribas not only are full cross market research
capabilities provided by the new Global Markets Portal, relevant
research and analytical tools from other asset classes are
incorporated directly in to the FX Portal. The BNP Paribas Cross
Market Overview available on the FX Dealer Portal is proving a
highly popular reference tool. Also customers have direct access to
BNP Paribas' comprehensive databases enabling quantitative analysis
of FX, bond, interest rate and equity markets, including cross
asset class correlation studies.
: As a hedge fund that treats FX options
as an asset class, we have a growing need for sophisticated
analytical requirements on currency derivatives. What sort of
func-tionality can online research products offer us for our Option
Online option research is one of the most rapidly growing areas,
where in addition to live option volatilities, the tools to price
and analyse increasingly sophisticated trad-ing strategies are now
becoming available. BNP Paribas also makes available its database
of option market data, including volatilities and risk reversals so
customers can perform their own analysis, in addition to option
market analysis and trading ideas from BNP Paribas' strategists.
Research on other structured FX products are also provided on BNP
Paribas' FX Dealer Portal.
: Are there any advantages in looking to
one portal or website for a comprehensive suite of FX research
offerings such as valuation tools, currency forecasting, trade
recommendations and strategic advice etc or would it be better to
seek bespoke of-ferings from different providers?
Although online research is now becoming more tailored to the
individual user, mak-ing it more practical to manage research from
multiple sources, many customers are still likely to find there is
little incentive to switch between websites. So providing
comprehensive online FX research is essential, not only to provide
a service for customers using a single source, but also to be able
to provide a bespoke research service. Customers are in the driving
seat and are likely to become increasingly spe-cific in requesting
the research they require and the way in which they want it
: We are interested in FX Indices. Are
there any bank generated Indices available online?
Many banks now produce their own FX Indices, mainly for
benchmarking and ana-lytical purposes, covering a whole range of
different currencies (areas) and other factors impacting foreign
exchange markets. BNP Paribas Global Bias Indices, which track
relative strength among a group of selected currencies are
extremely popular and the BNP Paribas FX Funds Index has also been
attracting significant attention recently. This particular index
tracks the performance of systematically based FX hedge funds and
CTA's and provides an insight in to market positioning among this
: We are keen to develop our own FX
trading strategies. What sort of online analyti-cal tools are now
available to assist us to do this and do any allow us to test our
Technical analysis packages are now being made widely
available online to help technical traders. While many of these are
off the shelf packages, BNP Paribas FX Strategy has designed and
built its own comprehensive technical analysis tools to meet the
needs of its customers. This product has been designed by technical
trad-ers for technical traders and allows customers to carry out
live technical analysis, using all the major technical tools.
: As we work with trading models we rely
on comprehensive and reliable sources of real-time market
information to assist us with our high frequency trading needs.
What types of FX research are now being delivered on a real-time
One of the advantages of online research is the ability to deliver
live real time re-search to the customer. As well as live prices,
most FX research providers also make available live commentary from
their FX Strategists, especially after important data releases and
events. In addition BNP Pariba
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