It seems that increasingly, some FX firms want to adopt the business models deployed so successfully by the large technology giants that have emerged from Silicon Valley.
Banks talk about developing their single-dealer platforms to mimic the Amazon model of being able to supply everything that their customer needs within one platform.
At least one trading venue is talking about moving to the Facebook model of charging nothing for the actual technology platform that it provides, because it will instead derive profits from the data generated by that platform.
FX markets in early Asia experienced what dealers refer to as a “mini flash crash” today as risk aversion levels were ramped up and volatility ensued following a profit warning from Apple.
USDJPY fell 400 points at one stage before reversing more than half of the drop, while AUDUSD also collapsed sharply to hit a new multi-year low. There were also sharp moves in other pairs, with Cable dropping more than 200 points and even EURUSD saw what is for the normally stable cross, a decent move.