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June 2023 in Previous Features

Firms on both the buy-side and sell-side which trade forex systematically or execute discretionary orders algorithmically, require historical market data for strategy development, optimization, back-testing and simulation.

The forex markets are unique in at least two characteristics in respect of available market data. Firstly, equity and futures markets are fragmented but the cost and regulatory burden of launching new exchanges and dark pools means that the number of these venues is inherently more static than the OTC forex markets. In contrast, sources of liquidity in the forex markets span global and regional banks, ECN’s, trading technology platforms and buy-side firms. Sources of forex liquidity are more dynamic. The forex markets are unique in at least two characteristics in respect of available market data. Firstly, equity and futures markets are fragmented but the cost and regulatory burden of launching new exchanges and dark pools means that the number of these venues is inherently more static than the OTC forex markets. In contrast, sources of liquidity in the forex markets span global and regional banks, ECN’s, trading technology platforms and buy-side firms. Sources of forex liquidity are more dynamic.

The forex markets are unique in at least two characteristics in respect of available market data. Firstly, equity and futures markets are fragmented but the cost and regulatory burden of launching new exchanges and dark pools means that the number of these venues is inherently more static than the OTC forex markets. In contrast, sources of liquidity in the forex markets span global and regional banks, ECN’s, trading technology platforms and buy-side firms. Sources of forex liquidity are more dynamic.

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