FEATURE
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economically allows us to price keenly and attract new flows,” he says. He remains convinced that working closely with clients to understand the nature of their goals allows RBS to be as competitive as possible and have open conversations about performance.
Increasingly, the system-to-system integration of e-FX platforms and services is contributing to the provision of increased STP and more efficient workflows. Hawes believes that it is interesting how similarly structured clients have vastly different workflows. He says: “Across order management, execution management, and back office allocations and confirmation processes, each client has their own unique twist. Being able to offer execution APIs and other system-to-system interfaces allows clients to piece their puzzle together and make RBS part of their solution.
Roger Hawes
“From benchmarking to payment related offerings, click and deal to DMA, we have constantly adapted to the requirements of our client base both in terms of functionality and venue.”
By also offering a full and competitive range of order book functionality, Hawes says that RBS has extended to its clients the same features and products it uses internally to enable them to effectively manage risk and liquidity.
Infrastructure
For Hawes, building out a low latency infrastructure is an essential part of their strategy. “Connectivity is key, as it not only opens up the opportunity for client acquisition but also new liquidity pools for us.” He adds: “It is imperative we build our pricing engine to be flexible with regard to venue. We look to accommodate clients’ needs wherever viable and have always had a strong focus on our multibank and ECN offering.”
“We concentrate a significant amount of our development resources on refining our own intellectual capital. Using bespoke techniques to understand our flow, measure risk and hedge
62 | april 2011 e-FOREX
Furthermore, in terms of value-added services, Hawes says that it is imperative that clients view RBS’s strategy, research and quant as core strengths of its e-FX offering. Intuitively linking them with smart transactional capabilities and full STP has to be one of the bank’s goals.
Hawes says: “We want to continue to partner with clients to help them find solutions that hopefully prove beneficial. Plain vanilla click-and-deal has its place but the real strategic value comes from complete front-to-back bespoke offerings.”
Te key to success will be in understanding what is valuable to your client base. “Value minus cost equals benefit, albeit value can often be very subjective,” he adds.
Diversity of client base
Te diversity of e-FX customers, and the different requirements and demands they have, is very much down to the difference of FX as an asset class, according to Stephane Malrait, head of the E-Commerce Group for Credit, Rates, FX and money markets, at Société Générale Corporate & Investment Bank (SGCIB). He says that following a review of its client base the bank found that FX is the asset class where it has the most diversified client base - from small corporate clients that are more payment-driven to algorithmic traders, which are extremely latency- driven.
“We are seeing two main trends,” he says. “One is the diversification of type of clients, by activity, and also
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