Tag Archives: FX Grid

A Tale of Two Kinds of Companies

Recently, two complex event processing (CEP) technology vendors changed hands. Progress Software sold its Apama CEP platform to Swiss vendor Software AG, and Tibco acquired StreamBase — the last remaining independent CEP vendor.

Both companies were tackling very complex issues in financial services and enjoyed initial success. The founders of Apama sold their firm to Progress Software for $25.4 million in 2005, the year StreamBase launched its first product. What sealed both vendors’ demise was not bad software, but rather a paradigm shift in the software industry.

When you search for the term “cloud computing” on Streambase.com, Google can find only two instances and they are both located in boilerplates of a business partner that is a part of a customer case study.  Run the same test on Apama.com and Google responds that the search “did not match any documents”. These are bad signs. Continue reading A Tale of Two Kinds of Companies

Some Businesses Take a Really Long Time to Build, FX isn’t One of Them

Recently, Euromoney Magazine published its annual FX Survey 2012. Whether or not you like the survey and trust its findings, at least there is entertainment value in the media coverage that discusses the results. A very entertaining article in the Wall Street Journal provided insights into the great lengths that several participants went to drum up support for their institutions. But there are statements from some of the protagonists that make me smile. Here are two examples:

“Instant results are difficult to achieve in foreign exchange.” (…) Coming in, you need to invest for three to five years before you see results on the scale that the top handful of banks have been [having].”

It’s a matter of perspective but I disagree. There might be some businesses that require multi-year investments before delivering results but FX is not one of them. I can think of a few wineries in Napa Valley where new crop has to mature for years before delivering world class product. Virgin America, on the other hand, launched an entire airline in three years. They achieved this by leveraging a variety of third party service providers to assemble their final product in record time. Likewise, launching your FX business need not require multiple years of investment to deliver a world-class FX product to the market. It can be as simple as setting up a network connection to Integral. You can be up and running in weeks. More complex deployments on FX Grid® might require several weeks or a few months but nothing in the neighborhood of three to five years. That’s just wrong. If you’re in the middle of such a project, consider cutting your losses and give us a call now. Continue reading Some Businesses Take a Really Long Time to Build, FX isn’t One of Them

Not all Clouds Are Created Equal

Not all clouds are the same, and I am not talking about the different ones you see up in the sky. The term cloud computing has reached true buzzword status by now, with everyone having a different understanding of what it means — which by the way is one characteristic of a buzzword.

I don’t want to add to the many interpretations of cloud computing out there, rather outline the most important characteristics that in my view define it: 1) Market participants receive and deliver services over the Internet. 2) They are sharing a common pool of IT infrastructure. 3) They have the ability to easily scale these services up or down in line with how their business needs change. 4) They pay for these services in a pay-as-you-go business model and, and 5) these services are managed by a provider. If all these statements are true, you are looking at a real example of cloud computing.

Open matters

Today, Integral announced an open platform for FX. While ‘open’ to some might just be yet another buzzword, it is critically important in this context. Continue reading Not all Clouds Are Created Equal

The New Meaning of ‘Mine’

Sometimes I get the question how Integral’s products and services fit into all the different FX solutions offered to banks and brokers today.  Let me clarify and explain how what we do is unique, but also uniquely apt to augment the solutions of others.

The largest FX network of its kind in the world…

For starters, Integral helps FX market participants by organizing and automating their FX business.  We provide what we do as a service that is delivered in the cloud.  That means our customers never have to worry about issues that come with buying a software package such as addressing installation problems, building adapters, ensuring connectivity, etc.  We take care of all of that for them. We also offer access to an FX network that we believe is the largest network of its kind in terms of scope of reach. By connecting once to Integral, you gain access to basically every kind of business that is involved in foreign exchange. Integral’s FX Grid is the place to connect with all the different entities (i.e. liquidity providers, prime brokers, banks, brokers, hedge funds, corporates) and venues that comprise today’s FX markets. Once on FX Grid, you’ll find every potential business partner, from retail and institutional brokers, prime brokers, buy-side and sell-side banks, to algorithmic trading firms — on a global scale.

… plays extremely well with others

Integral is a neutral technology provider, not a broker or a bank. This simple statement already gets us a long way to being an acceptable partner for many. However, unlike other technology providers that offer a stand-alone software package or framework to enhance the business fortunes of one customer at the time; from the beginning, we designed our system with the concept in mind of providing a utility-like service that has the potential to serve the entire FX industry.  Every customer benefits from not only our expertise, but also from the network effect that comes from having created a virtual business community. Whether you’re looking to expand your customer base, add to your list of liquidity providers and prime brokers, or want to do what you do more efficiently, FX Grid delivers.

The new meaning of mine

Unlike systems set up by competitors, where participants are forced to adapt their unique business to the cookie cutter approach of their vendor, Integral’s approach is completely different. We believe that OTC market participants have unique business models which require custom configured deployments. By giving users the ability to differentiate themselves while also using a shared service environment empowers them with the best of both worlds: increased flexibility with reduced costs.

Integral’s new advertising campaign

You might have seen our new advertising campaign (Mine) in various trade publications and online.

Mine is a term from the world of FX voice trading. The counterparty that’s saying it indicates that they are willing to buy at the conditions outlined to them.  I propose an extended definition of ‘mine’ to mean; the direct ownership of one’s FX trading and aggregations. It means that the bank or broker has the complete control over their world while still reaping the rewards of using a shared cloud infrastructure. That way, they benefit from all the advantages of this business model with the knowledge that it’s uniquely their liquidity, their customers, their algos, their brand and ultimately their profits.

Integral puts you back in control of your FX business. Who is in control of your FX business?

If you want to discuss this further and happen to be at the Profit&Loss Forex Network show in Chicago, I encourage you to stop by our booth.

Looking Back At May 6th

Last week ended with a bang.

The Wall Street Journal reported on Friday that on Thursday, “At one point, the euro fell 8% against the yen, ending down 5.5%. Given currency traders’ leverage, some may face crushing losses.”

Further: “Despite the euro’s 0.75% gain versus the dollar Friday, it suffered its worst week since the height of the global crisis in October 2008. The common currency was down about 4.4% from last Friday and down about 11% since the end of 2009.”

The New York Times reported that “The major indexes gyrated on Friday before closing down sharply on continued fears that the Greek debt crisis would spread and lingering questions about Thursday’s sudden plunge.”

So, was it a bad trading day all over? Here is a different tune from ForexMagnates, an FX blog that is written by Michael Greenberg: “What follows is Integral press release which states that Integral not only didn’t experience any difficulties but also pretty much enjoyed the day. I don’t yet have the exact details regarding who failed to deliver and who passed this crazy day unscathed but it seems that Integral’s aggregation model is working.”

Continue reading Looking Back At May 6th