IPC Systems, Inc., an international provider of specialized communications and managed network-as-a-service solutions, has announced the launch of FX Hub, a newly engineered solution offering enhanced trade lifecycle capabilities and services, according to an IPC Systems statement.
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FX Hub is a low latency, co-located performance solution that was designed to help reliably source liquidity, offering a variety of streamlined functions for market participants. The solution is based out of one of the FX market’s most centralized nexuses, i.e. Equinix’s International Business Exchange data centers (IBX), including such hubs as NY4, LD4, TY3, and SG2, among others.
The newly launched solution also boasts low latency access across IPC’s dark fiber rings to leading FX liquidity providers and dealers around the industry. FX Hub’s foray into the industry is important as it helps address several constraints on market participants, namely in terms of risk management.
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Successfully trading the foreign exchange markets is challenging given the complicated market structure
As such, FX Hub was designed to enable several capabilities, including streamlined connectivity to brokers, dealers, investment banks, prime brokers, and liquidity providers. Additionally, the solution yields extensive access to market data and trade lifecycle services such as order management and execution management systems.
According to Larry Tabb, Chief Executive Officer (CEO) of Tabb Group, a financial markets research and strategic advisory firm, in a recent statement on the launch: “Successfully trading the foreign exchange markets is challenging given the complicated market structure. There are a vast number of instruments such as currency swaps, forwards, options, indices, outrights, non-deliverable forwards and structured products along with many exotic currency pairs that are being traded by market participants. FX is not just about spot transactions or trading only G4 currencies.”
“The growing participation of pension funds, insurance companies, regional banks, hedge funds and proprietary trading firms in FX has led to more heterogeneity in the markets. Consequently, reliable, secure and operationally resilient managed network services as well as access to an ecosystem of diverse counterparties have now become the backbone for successful FX trading,” added David Brown, Senior Vice President (SVP) and Managing Director, Financial Markets Network, IPC, in an accompanying statement.