The struggle for margin in trading in FX is driving innovation, but not without pain.

Buy-side and sell-side relationships are always tense in OTC markets, as the profitability of dealers hinges on the bid-ask spread they can charge their clients, and on volume. Buyside clients seek to minimize spreads and reduce trading volume where possible, in order to cut unnecessary costs.

Phil Weisberg, EVP of strategic planning and partnerships oneZero, commented, “If you can help traders create a positive feedback loop between the data that is generated by trading activities and how they use that data to make real-time decisions about pricing and risk, and put that together for them, it gives them the ability to take two or three steps ahead in terms of upgrading their technology infrastructure.”

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