Home Crypto News Post-COVID, Liquidity Bridging Is More Important Than Ever: Tools for Brokers

Post-COVID, Liquidity Bridging Is More Important Than Ever: Tools for Brokers

19 min read

So much has modified over the course of the previous twelve months. In addition to the ways in which our every day lives have been affected by COVID-19, the monetary world has seen many adjustments.

For foreign exchange, COVID has rung in a brand new period of exercise. Like many different facets of the monetary world, buying and selling has seen a resurgence in actions. Waves of latest merchants got here into the area this yr. As a outcome, enterprise is booming and brokers should sustain with the competitors.

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Finance Magnates not too long ago spoke with Albina Zhdanova, Chief Operating Officer at Tools For Brokers, about adjustments within the foreign exchange business over the previous yr, in addition to how ToolsForBrokers main liquidity bridging resolution helps brokers play on the prime of their sport.

This is an excerpt that has been edited for readability and size. To hear Finance Magnates’ full webinar with Tools For Brokers COO Albina Zhdanova, go to us on SoundCloud or Youtube. To study extra about Tools For Brokers’ liquidity bridging resolution, referred to as Trade Processor, click on right here. This is a sponsored piece.

The Forex Industry Is Constantly Changing, however It’s Not Going Anywhere Anytime Soon

“The important thing that we can do to look into the future is to understand the past,” Albina stated. “The undeniable trends that we have seen in the past is that everyone is moving toward regulation; all countries are gradually coming to that point.”

“We also see that the traders themselves are improving their trading strategies a lot. They are trading a lot using APIs and automated systems that do fundamental analysis. I’ve seen many traders develop an approach to diversify their investment portfolios to invest in the future and have the forex market as one part of their whole system.”

“In terms of the short-term view of incomes and returns versus long-term plans, there are many things that have changed economy-wise,” Albina defined.

She recalled “one of the first things” that she heard at a convention when she joined the foreign exchange business quite a few years in the past: “I heard that this industry was going to die within the next year, or just fade away soon,” she stated. “I’m sure that there are still people who are saying this now.”

Could there be any reality to this? Albina doesn’t suppose so. “It’s not gonna die,” she stated. “It is a young industry, but we need to remember that this is an important pillar of the world’s financial system. It’s not going to disappear.”

Still, as a result of the business is so younger, it’s consistently altering. As such, “to be able to catch what’s going to happen, I think that instead of ‘counting down our days’, people and companies should embrace the fact that the industry is a changing, living organism,” and adapt shortly.

Brokers Need to Be Ready to Meet Trader Demand for New Assets with Liquidity

What sorts of adjustments do business members must adapt to? “Many remember the binary options trend that was a quick up-and-down because it was banned everywhere; everyone thought that the same was going to happen to the cryptocurrency trend that happened after that,” she stated.

Of course, “that didn’t really happen. It wasn’t the same situation, and crypto is still there.” In truth, “we see a lot of institutional clients investing in crypto as a method of capital preservation because the whole economic situation is very uncertain.”

Still, “we can’t really predict what will happen in the future, but what we have to do is to preserve and prepare the skills and qualities in our companies to be ready for anytime that the future has for us.”

“In the last two years, we’ve seen more demand for alternative assets,” Albina continued, particularly referencing “FX, CFDs, cryptocurrencies, equities, options and metals.”

Therefore, corporations must be able to adapt to buyer demand: for instance, “the ability to add these new assets, whatever they will be, should be adopted very quickly,” Albina stated. Additionally, corporations must be able to go above and past the competitors: “we recently added weekend FX trading because we know that it’s not offered by many banks or institutions,” she added.

However, Albina believes that weekend buying and selling, and an general drive towards flexibility in markets, is the way in which of the longer term. “This is what’s going to happen,” she stated. “I think part of that was influenced by crypto trading because you can trade crypto 24/7. FX and other types of trading will slowly move toward 24/7 trading as well.”

In addition to taking an adaptive method towards development, Albina recommends that corporations must companion with companies which have a “startup mindset.” In different phrases, these companion companies ought to share this adaptive method.

“They must be able to change things quickly, to implement new functionalities, to quickly adapt new things from regulators and traders and from the risk management team as well,” she stated.

What Are the Main Obstacles That Retail Brokers Are Currently Facing?

However, so as to have the ability to adapt shortly, buying and selling companies have to be geared up with the right expertise.

Indeed, Albina defined that one of many greatest obstacles that corporations face is “trying to use old tricks in a new environment.”

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“The complaints that the forex industry is ‘going to die’ are often coming from people who believe that traditional practices are not going to work, which is why change is so important,” Albina stated.

While companies which have been working within the foreign exchange business for an extended time have the knowledge of expertise, they could not at all times be in contact with the cutting-edge buying and selling expertise that’s out there for brokers as we speak.

If you’re nonetheless clinging to the previous, “there are clear signals that are telling you that the time has come to make changes,” Albina stated.

What are these indicators? “The reason that we decided to build the liquidity bridge in the first place is that when we have shared our knowledge with our clients, we noticed that there are so many simple small things that can be sorted and wouldn’t have caused big issues that happened because they weren’t addressed.”

Albina stated that: “we aimed to sort the reason of the issues that were happening.”

This is what led to the creation of Tools For Brokers’ liquidity bridge, referred to as Trade Processor. “We just decided to do the whole thing by ourselves because we know how to avoid these major issues from the beginning,” she stated.

“It’s Important to Evaluate Your Business and the Partnerships That You Have Right Now and to See If Now Maybe Is the Time to Make Changes.”

What sorts of points does the liquidity bridge assist to deal with?

Albina stated that the commonest subject is time-to-market: when “the partners that you’ve chosen, or your internal development team, is holding you back from launching your new product.”

“It might not seem like a big issue, because your product will get launched eventually,” Albina stated. “But, if you think of the fact that somebody else may have launched their product before you, or that someone else doesn’t have problems that prevent them from launching, this is the cost of launching later.”

Beyond delays in time-to-market, “another big thing we see is technical support,” Albina stated. “With trading technology, there is always something happening, and if you want to know the answer about why this happens and what the logic was,” you want assist.

Albina clarified that she “wasn’t referring to software bugs, because all liquidity bridge providers have very good systems.”

However, “when you want to understand how things work, and it takes you a full week of pinging them just to understand what is happening, I think this is part of what’s holding brokers in the past.”

“It’s important to evaluate your business and the partnerships that you have right now, and to see if now maybe is the time to make changes.”

Tools for Brokers’ Liquidity Solution Enables Brokers to Be Ready for Anything.

How can Tools For Broker’s liquidity bridging resolution assist brokers?

“We have decided to take a completely different approach with an independent system at the center of it,” Albina stated. “This creates a private aggregation pool for each broker.”

“This provides a lot of benefits for your company,” Albina defined. “It means that you still have the opportunity to connect with over 50 liquidity providers and exchanges that we have right now, and the connection will happen directly to your pool – you are not sharing the connection with others.”

“Another part is that we’ve built the aggregation system using modular code,” Albina defined. “What this means in ‘plain English’ is that the code can be easily modified based on the clients’ desires. If you want to change one function, it will not influence the other parts.”

This permits Tools For Brokers to create personalized merchandise shortly and effectively. “We can launch new versions of the product every few months with new features,” she stated. “This might be based on regulations, new types of assets, new connections, new formulas, new filtration rules, anything.”

“Because this is a private, independent system, it can also be used on the weekend,” Albina added. “If you are part of a centralized system, you are not able to control it. If it is off on the weekend, it is off for everyone; if it is failing, it is failing for everyone.”

However, “if it is your private system,” there may be rather more flexibility. “If you want it to work on the weekend, it will work on the weekend. If you want to update it, you do that within your functionality. If someone’s system is down, your system is unaffected.”

This is an excerpt that has been edited for readability and size. To hear Finance Magnates’ full webinar with Tools For Brokers COO Albina Zhdanova, go to us on SoundCloud or Youtube. To study extra about Tools For Brokers’ liquidity bridging resolution, referred to as Trade Processor, click on right here. This is a sponsored piece.

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