Projected Growth of High Frequency FX Trading
Source: Aite Group
BT Connectivity To Global FX Markets
40%
The 35%
FX market is the largest, most liquid financial market in the world, trading around the world and around the clock. With BT’s global reach,
24-hour customer service, and connectivity to major trading and market data FX venues and services, our shared market infrastructure is the
30%
ideal connectivity platform for global foreign exchange trading.
25%
40%
Through
20% a single, redundant connection, the BT Radianz Managed Infrastructure is the only connectivity platform that gives customers direct
access
25% of FX services worldwide. More than 60 firms use BT to give clients access to their services including market data,
15%to the widest range
pre-trade analytics, single-bank trading, multi-bank portals, prime brokerage, risk, and customer management tools.
10%
5%
Supporting
Market Dynamics
0%
2012is the largest, most dynamic market in the world and that it supports all other markets. With
BT understands that2009
the foreign exchange market
the creation of new derivative products and the increased use of automated trading strategies, the FX market continues to grow significantly.
The Bank for International Settlements (BIS) has released the preliminary results of its triennial survey of foreign exchange turnover. The survey
indicates average daily FX volume stood at $4 trillion per day in April 2010. This represents a 21.8% increase from the 2007 yardstick.
Growth of FX Volume
Source: BIS, *Reporting Dealers, Other Financial Institutions, Non-Financial Customers
4,000
3,500
3,000
Banks
2,500
Other
Financials*
Corporates
2,000
1,500
1,000
500
0
1998
2001
2004
2007
2010
1998
2001
2004
2007
2010
961
719
1,018
1,392
1,548
Banks
299
346
634
1,339
1,900
Other Financials*
266
174
276
593
533
Corporates
Not only is the FX market seeing incredible growth in volume,
the dynamics of the market itself changing. Unprecedented
growth in other markets is having a subsidiary effect on foreign
exchange. The BIS survey indicates that cross-border transactions
now represent 65% of all FX trading activity. Algorithmic trading
strategies by hedge funds and traditional money managers is
further contributing to the enormous growth rates in market
data and trading volumes that consequently have direct impact
on the FX market.
In the past several years, financial firms trading foreign exchange
are facing enormous challenges to maintaining low latency
delivery of FX market data and access to electronic trading
venues. In such an environment BT knows that speed is key
and milliseconds can make the difference between profit and
loss. As the leading provider of connectivity and hosting to the
global financial services community, the BT Radianz Managed
infrastructure is optimized for the time-critical demands unique
to financial services.
Benefits of Accessing Global FX Markets through BT Radianz Managed Infrastructure
Access to top e-FX venues: Regardless of whether a firm uses an application programming interface (API), multi-liquidity provider center, or singleliquidity provider for their electronic FX trading, BT connectivity can provide access to all of these sources. All of the largest multi-bank portals and
more than 20 single-bank venues use the BT Radianz Managed Infrastructure as the secure access & distribution platform for their clients.
Fast, consolidated connectivity: The average FX firm manages relationships with five-to-ten liquidity providers. BT Radianz connectivity consolidates
all of a customer’s e-FX trading venues and counterparties onto a single connection – saving money, time, circuits, equipment, maintenance, and
management. Our unique shared market infrastructure model allows existing customers to connect to new services and trade counterparties in
as little as one day, facilitating business interaction by reducing many of the typical impediments of connecting to customers such as security and
compliance checks. The BT Radianz Managed Infrastructure ensures fast, secure, reliable access to foreign exchange services around the world.
Ultra-low latency: The BT Radianz Managed
Infrastructure supports the high capacity and
minimum latency that the financial markets require.
The entire network – from core to client access –
has been designed specifically for the high-speed,
high-performance delivery of market data and
trading applications. For the ultra-low latency
requirements BT has developed two services to meet
the requirements of algorithmic and high frequency
trading strategies.
BT Radianz Proximity Solution combines the world’s
leading connectivity platform with customers’
proprietary trading engines, housed in one of
BT’s world-class, fully-managed hosting facilities.
BT Radianz Proximity Solution places customers’
servers virtually in the middle of execution venues,
providing low-latency access to trading and market
data for the world’s leading liquidity sources and
execution venues.
Projected Growth of High Frequency FX Trading
Source: Aite Group
40%
35%
30%
25%
40%
20%
25%
15%
10%
5%
0%
2009
2012
BT Radianz Ultra Access service provides ultra lowlatency access to market data and trade execution
venues. Its patent-pending design uses the highest capacity lines available and network engineering methodologies that minimize jitter and
serialization delay. The service is available to metropolitan New York, London, and Chicago financial firms requiring the lowest possible latency for
automated and DMA trading
Growth of FX Volume
Scalability: With market data rates increasing by as much as 50% per year, rapidly scalable connectivity for both market data and trading is critical.
Source: BIS, *Reporting Dealers, Other Financial Institutions, Non-Financial Customers
Each customer connection is constantly monitored by our customer service and engineering teams to prevent data loss. This allows BT to alert
customers before market traffic reaches critical levels. The unique design of BT’s infrastructure also allows customers to monitor their connection and
generate usage reports for internal planning and audits. 4,000
3,500
Expertise: As the world’s leading connectivity provider to the
global financial industry, BT provides IP networking services to more than 14,000 sites
around the world, all of which trust BT with their most critical data and trading connectivity. The BT Radianz Managed Infrastructure was created with
3,000
Banksveterans
the sole purpose of providing connectivity and hosting to the
financial services industry. It is designed and managed by financial technology
to meet the stringent requirements demanded by our industry.
2,500
Other
Financials*
Global Reach: Firms utilising advanced trading strategies require
access to multiple execution venues around the world. With a BT Radianz connection,
2,000
Corporates
firms have access to the widest range of electronic FX trading venues including all major FX banks and multi-bank portals throughout Asia-Pacific,
1,500
Europe, and North America.
1,000
500
The FX market has grown dramatically in the past several years with much of its growth
0
attributable to alpha currency trading
by
hedge funds
and2004
leveraged
desks at2010
traditional
1998
2001
2007
firms that are managing for pure currency returns. At the same time, long-term analysis
demonstrates a clear link between fundamental economic activity and growth in foreign
1998
2001
2004
2007
2010
exchange volumes, driven by the growth and globalization of the world economy.”
961
719
1,018
1,392
1,548
Banks
299
346
634
1,339
1,900
Other Financials*
266
174
276
593
533
Justyn Trenner, ClientKnowledge
Corporates
PRE-TRADE
PROVIDER
Aspen Trading
CMA
Comstock / Interactive Data
CQG
DealHub
SuperDerivatives
Tenfore
Townsend Analytics (TAL)
Tradermade
Tullett Prebon
APPLICATION
COVERAGE
FX insights
Teleticker, CMA Station Advance
GTIS
CQGLan
DealHub.Net, FXView
SD-FX, SD-IR
Quotespeed
Real-Tick
Tradermade
SURF
Research and Analytics
Latin America Market Data and Analytics
Market Data Aggregator
Real-Time Analytics
Trade Monitoring, Market Data Aggregator
FX Options
Market Data Aggregator
Cross-Asset Derivatives Pricing Solution
Real-Time Analytics
Market Data
TRADE – E-FX – MULTI-BANK/BROKER
PROVIDER
360 Treasury Systems
Currenex
CME Group
Fairex
FlexTrade
Forex Capital Markets
FXall
FX Concepts
GFI
Hotspot FX, Inc
ICAP
IFX Markets
Portware
State Street Global Link
Sungard
SuperDerivatives
Tradition Group
Viel/Tradition
APPLICATION
COVERAGE
TEX
ESP, ERFS, FX Connect, GovEx
ilink
Fairex
FlexFX, MilanFX
FXCM Pro
Accelor, Quickfill, QuickOMS, QuickTrade
FX Concepts
ForexMatch
Hotspot FXi
EBS Platform
IFX Direct
Portware FX
FX Connect, MM Connect, Futures Connect, Funds Connect
STN
SD-TR
FXDirect Dealer
Gaitame
FX, Fixed Income
FX, Money Markets
FX Futures, FX Options
FX
FX
FX
FX, Money Markets
FX
FX Options
FX
FX
FX
FX
All Asset Classes
FX, Money Markets
FX Options
FX
FX
API/FIX
Y/Y
Y/Y
Y/Y
Y/Y
Y/Y
Y/Y
Y/Y
Y/Y
Y/Y
Y/Y
TRADE – E-FX – SINGLE BANK
PROVIDER
ABN AMRO
Bank of America Merrill Lynch
Barclays
BNP Paribas
Brown Brothers Harriman
Commonwealth Bank of Australia
Citigroup
Credit Suisse
Deutsche Bank
Dresdner Kleinwort
Goldman Sachs
HSBC
HVB Markets
JPMorgan Chase
Morgan Stanley
New Edge Financial
Royal Bank of Canada
Royal Bank of Scotland
Societe Generale
Standard Chartered
UBS
Westpac
APPLICATION
COVERAGE
GFX, 2 trade 1
GFX , FXTransact Dealer, FX2B
FX Trader, BARX
FX Dealer
FX WorldView, FX OrderView
Velocity
CitiFX
Prime Trade
FX Plus / Autobahn
Click&Trade™ / GATOR
REDI, edealer FX trading
HSBCnet
eFX Trading
eXpress FX
Passport FX
New Edge, FX
FX Direct
RBS Trade , FXOrderbook
SGFX Trade, SG Prime
On Line Treasury (OLT)
FX2B, FX Trader, Swisskey
Mareeba
FX, Commodities, Futures
FX
Multi-Asset
FX
FX
FX
FX
Multi-Asset
FX, Fixed Income
Multi-Asset
Multi-Asset
FX, NDFs
FX
FX
FX
FX
FX
FX
FX, Money Market
FX
FX
FX
APPLICATION
COVERAGE
Multiple
Multiple
Multiple
FX
FX
FX
TRADE – WHITE-LABEL SOLUTIONS
PROVIDER
Baxter Solutions
First Derivitaves
Integral
POST TRADE
PROVIDER
City Networks
CLS Bank
DealHub
Logicscope
NCI
State Street Global Link
Traiana
APPLICATION
COVERAGE
CityNet
CLS Settlement
DealHub.Net, DBView
TradeSTP
DDN
GTSS, Futures Connect
Harmony, TRM
Broker Confirmation Matching
Settlement
STP, Workflow, Aggregation
FX
FX
All Asset Classes
Prime Brokerage Post-Trade
API/FIX
Y/Y
Y/Y
Y/Y
Y/Y
Y/Y
Y/Y
Y/Y
Y/N
Y/Y
BT Radianz Services
Connecting the Global Financial Services Community for 10 years
BT Radianz Managed Infrastructure
The BT Radianz Managed Infrastructure is the leading connectivity and hosting platform for financial firms around the world. All technology,
operations, and customer support for the BT Radianz platform are tailored to meet the exacting requirements that financial industry customers
demand. The BT Radianz service supports 14,000 financial customer locations around the world, providing connectivity to more than 400 of
the world’s leading financial content and service providers including the top 10 global stock exchanges, top 50 global broker-dealers, and
48 of the top 50 global asset managers.
BT Radianz Features
The unique design and capacity management of the BT Radianz Managed
Infrastructure results in low latency access to market data, trade execution,
and trade cycle applications and services.
BT Radianz advanced capabilities include BT Radianz Ultra Access, which
provides ultra-low latency connectivity with sub-millisecond round-trip
delays to select exchanges. BT Radianz Proximity Solution combines highperformance connectivity with fully-managed hosting facilities to offer the
fastest access to more than 25 exchanges around the world.
BT Radianz services consolidate all of a customer’s external market connectivity onto a single connection, ensuring fast, secure, reliable access to trading partners and services throughout the securities trade cycle. BT Radianz
connectivity is fully-redundant, diversely routed to the customer site, and
carries a 100% Service Level Agreement (SLA).
BT’s engineering team designs and manages all connectivity to ensure that
customers have the capacity and resiliency needed to reliably receive market
data, trade, settle and communicate with their counterparties. Connectivity is
constantly monitored, so as market volumes grow or customer requirements
change, BT is able to scale each customer’s connectivity quickly and remotely,
with no site visit required. This unique, scalable design allows existing customers to connect to new services and trade counterparties in as little as one
day, enabling them to begin generating revenues as quickly as possible.
The BT Radianz model:
Multiple services over a single connection
Brokerage Firms
IP Voice Channels
Post-Trade
FX Info &
Trading
Available
Capacity
Info &
Analytics
Exchanges,
ECNs, MTFs
Order Execution
BT in Financial Services
BT has been providing products and services developed specifically for the financial services industry for more than 25 years. By being the
leading networked IT services provider to the global financial community, BT combines its core strengths to design and manage solutions that
meet customers’ complex infrastructure and communications services requirements, enabling financial service firms to reduce costs, improve
efficiencies and better serve their customers.
bt.com / GBFM
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Registered in England No: 1800000.
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