With more data available to FX market participants than ever before, the real value is in being able to interpret this data, says Maria Prata, managing director, global FX, at Deutsche Bank in a new video interview with Profit & Loss.
Acknowledging that “data” has become something of a buzzword in the FX industry of late, Prata says: “People want to get access to as much data as they can. But what we’re finding with our clients is that it’s about how you interpret the data. So not only do you give me the information that’s either on the public venues or even your own volumes and statistics, but what do you do with all that data, is it really helping you make the decisions that you need to make?”
Prata continues “And so where we’re focusing a lot of our efforts is putting out studies and our interpretation of the data for clients to be able to use as part of their decision making process. And that could be in the pre-cost, it could be in the TCA, it could be in terms of how they allocate their businesses out. I think that’s the next step in this evolution, it’s not only about the data but what is it that you can derive out of it. Do you find value in that? That’s what the conversations with our clients are about now.”
Click below to watch the full interview in which Prata also discusses the implications of rising demand for FX algos from buy side firms, the practicalities of real-time transaction cost analysis (TCA) and data as the new battleground in the industry.