FX Aggregation

Johann (Hansi) Leikert

Manager Trading Solutions Europe East Phone: Email: +43 1 53112 283 [email protected]

Rovinj, May 2012

AGENDA

– – – –

Challenges for Banks Trends in FX Trading Thomson Reuters Dealing Aggregator What

´

s new in Reuters Matching

What are the challenges for Banks in FX?

•

Price Aggregation

– – – Lack of industry-wide consolidated tape Own developed solution or third party vendor First step for an winning automated trading operation •

Managing multiple trading venues

– – – – – Different locations and built-in distance latency Varying frequency of price distribution Lack of price normalization Lack of consistency across venues that present depth of book Differences in tick size and order types 3

FX Trends Market Fragmentation ECNs FX Traded Electronic FX Traded In High Frequency FX Algo Trading

FX Trading in the 80

´

s

FX Trading in the last 10 years

Where is the best price for me?

FX Trading in 2012

Thomson Reuters Dealing Aggregator

•

Market Aggregation

•

Liquidity Management

•

Execution Management

•

Position Management

•

Algorithmic Trading

•

Deployed or Hosted

•

Integration to Sales Channels (RET) Dealing Aggregator consolidates these destinations and sends orders to them Example Destinations Reuters EBS Barcap BBG Lava DB Currenex CS Hotspot CME FXall

9

What

´

s new on Reuters Matching

•

New Matching API

•

New Matching GUI with depth of book this year

•

International Matching for Croatia

•

Thomson Reuters is Number One FX Liquidity Pool

– $ 137 billion per day