Decisions made by the Swiss National Bank yesterday caused excessive volatility in the Forex Market. This recent debacle has proven once again the importance for risk management and trade reconciliation for brokers. Time and again we find that brokers do not put enough emphasis on managing their risk but instead choose to “fly by the seat of their pants” until it is too late. We have heard an extensive amount of complaints from sources that their liquidity providers have re-quoted, froze liquidity, and even altered confirmed ticket prices hours later.… read more →
Here at CurrentDesk we are proud to introduce our real-time trade reconciliation and position monitoring solution called CurrentRisk. CurrentRisk was designed specifically to help brokers solve some of the major issues faced today within the Forex community. Here we will discuss a few of those issues and how CurrentRisk works to improve brokerages. Unwanted Exposure Due to Third-Party Technology Failures With the rapid growth of the retail broker marker there are often communication errors between trading platforms (frontend) and the aggregation tool (backend). These errors create unwanted exposure, which may… read more →
For brokers operating a true “no dealing desk” model, handling client risk isn’t much of an issue. What is a critical issue is trade reconciliation. In an article about risk management practices published in the Forex Magnates Q1 Industry Report, we discussed problems that brokers and dealers from the smallest shops to the largest global financial concerns face. While firms mentioned the importance of monitoring arbitrage, network latency, and market volatility, trade reconciliation was a universal item that companies needed to address. Trade reconciliation refers to the tracking of executions… read more →
