Special Reports » OTHER REPORTS » FOREIGN EXCHANGE

— Collin Crownover, State Street Global Advisors

All players in the currency sector are claiming expanding books of business, although specific strategies and solutions on offer differ widely. Gerry O’Kane reports.

FX volumes are booming, with the bulk of trades conducted electronically. Jake Smith, head of marketing at FXMarketSpace, describes how sophisticated technology is powering this trend.

Craig LeVeille, director FX products at CME Group, looks at how the FX options market is beginning to experience the growth spurt previously seen in the futures market.

FX’s stellar returns of 2004 could not continue, but the maturing asset class still pulls in good performance and pension funds are recognising it as a source of alpha again, says Tim Cooper.

Regulation and efficiency are driving demand for foreign exchange electronic trading, says Neill Penney, global head of product strategy for multi-bank trading portal, FXall.

— Mark Warms,FXall

eFX may have seen a dramatic increase in the number of people using it, but as these numbers swell software providers are coming under pressure to provide an electronic solution that is inexpensive, efficient and can sway those not currently enamoured by it, writes Paula Garrido.

The interest that exchange traded FX futures is seeing from corporations, asset managers, hedge funds and retail investors shows how it has developed over the years. However, CME’s position is now being challenged by Eurex, which is spurring competitive prices, writes Paula Garrido.

Investors have already switched on to the idea of e-trading foreign exchange, but banks are responding to demand by creating ever more sophisticated platforms to respond to client needs, writes Jake Smith.

Rick Sears of CME examines how global financial managers are utilising foreign exchange to boost their returns and how electronic FX trading is transforming the marketplace.

Ray Dalio explains the various strategies on offer for those who wish to hedge their currency exposure – the prudent thing to do when international exposure reaches 15 per cent of a portfolio.

Fred Francis puts the case forward for outsourcing securities trading and settlement and the functions they perform.

Currency managers have worked hard to make the traditional perception of currency as a ‘difficult’ topic as out-of-date as they can, writes Peter Wakefield.

As I noted at the very start of this article, there has been enormous growth in currency management in the last year or two, and it is natural to wonder whether this may reduce or eliminate the return opportunities currency offers as a result.

Pessimism over equities means investors are looking at foreign exchange trading. Now FX managers must address historical anxiety over this asset class, writes Roxanne McMeeken.

— Mackaman: eFX introduces STP efficiencies

It sounds an ideal situation; an automated currency dealing system with access at the best exchange rates, but many clients still take some convincing. Roxanne McMeeken reports.

A slowdown in global growth, the surge in oil prices and the US trade deficit will have important implications for currency markets. Nick Bennenbroek explains.

Options strategies are an important element of any currency portfolio, either in a multi-manager setting or within the investment process of a single manager. John Taylor, Arun Muralidhar and Pierre-Yves Guillo explain.