Mastering Derivatives Markets, 4th Edition

10

The Impact of Electronic Trading on the FX Market

Ray McKenzie, VP of US Futures Market Development and Product Sales, IntercontinentalExchange (ICE)

‘Little did they know that by allowing the investment banks into the OTC market was like letting the Trojan Horse into their dealing rooms.’

The early years

FX as part of a commodity portfolio

First electronic dealing platforms

Electronic market making

Phases I and II

Point and click vs algo traders

The impact of the credit crisis on banks’ FX trading

Phase III

THE EARLY YEARS

I began my career in the world of foreign exchange the day I started working as an arbitrage clerk for J. Aron and Company in August 1979, on the floor of the Chicago Mercantile Exchange (CME), outside the currency ...