LeapRate's Daily Forex Industry Newsletter
Join now to receive first access to our EXCLUSIVE reports and updates.
Screenshot of a breaking news alert e-mail from Q2 2017
New media has taken online business by storm of late, and indeed within the FX industry, methods of providing information to traders has evolved substantially.
Harry Daniels, CEO and Founder of LiveSquawk documents the latest advancements in squawk commentary.
As one of the early squawk commentators of the electronic trading era, I have seen a meteoric rise in the use of news/analytics and voice broadcasters over recent years. ‘Squawk’ services have been around for far longer than those new to the industry may realise. Some 25-years ago, one of my first jobs on the LIFFE floor was on a link line; an open telephone line to brokers and bank traders, quoting prices and providing further colour on who was buying and selling and in what kind of size and voracity.
“43/44…200 by 400…..Goldman the bid, Locals the offer….4s trade last …” was a typical quote heard across dealer boxes back in the day. The ‘squawker’ or commentator tended to be the eyes and ears of the trader sat in an office away from the floor.
Technology has played an ever increasing role in how customers receive news and information, enabling financial news broadcasters to reach an ever broader audience; from the tier one bank trader, the hedge fund manager, through to the retail client, trading via a broker platform. Data and news can now be delivered to the end-user using a variety of products (dealer boards, desk top applications and mobile devices).
A near 24/7 online service now provides the listener an understanding of what is making a particular market move and has meant traders are no longer constantly blindsided by market moving headlines or unscheduled events. The advancement of the social media sentiment tools now employed by the more advanced audio news services again highlight how far this industry has come and how invaluable the service now is for anyone hoping to trade on an intra-day basis.
A case in point is the current Greek debt crisis; on a daily basis officials across Europe, from Athens to Brussels are making sometimes inflammatory statements that do nothing more than create instability and generate volatility. News analytics sites can provide texture and context to a headline, potentially saving heavy losses and in many an instance creating an opportunity for the client to make money.
So where does the industry go next? Well here at LiveSquawk gaining accreditation to the major global central banks and statistical departments of G20 governments will help demystify and democratise the dissemination of financial news even further, providing even better insight into how to interpret and prepare around events and data releases.
Streaming live audio and video of key speeches and testimonies, alongside the accompanying reports and previews provide the end-user a far more comprehensive and complete first-hand view of what is making the markets tick.
As a former trader and broker, had I been able to utilise such services back in the day I would most definitely have made a better fist of trading. It seems inconceivable in today’s environment that people are still unaware or do not see the usefulness of a squawk/ news analytical service.
This is a Guest Editorial by Harry Daniels, CEO and Founder of LiveSquawk.