Autodealing in FX: market impact and best practice recommendations from the New York Foreign Exchange Committee.
The document reviews the evolution of autodealing in the foreign exchange market, with a view toward analysing its effect on trading in this market. In particular, the document considers: (i) developments and advancements in technology, (ii) changes in trading activities and strategies, and (iii) descriptions of the various market “channels” (such as white labeling) currently in use.
Additionally, the document evaluates the impact of this evolution on market functioning and also offers several recommendations to firms for managing their risk in this marketplace.
The best-practice recommendations address risk management and technology considerations for operating within the autodealing setting, steps to apprise new entrants of professional practices and standards of behavior, reputational risk and confidentiality issue monitoring, and management of latency issues.» Download the document now 103.4 kb (Adobe Acrobat Document)