This article is authored by Benjamin Becar, Head of Sales Enablement & Strategy (Trading) at smartTrade
The Trading Leaders’ Network in Singapore on April 15, 2025, provided a vital forum for FX professionals to dissect the industry’s pressing challenges. As an attendee representing smartTrade Technologies, I observed a clear consensus emerging from these discussions: the FX landscape demands unprecedented agility in risk management and a smarter adoption of technology.
While geopolitical shifts and currency dynamics provide a volatile backdrop, the core focus for participants was on actionable strategies. The current market environment is accelerating the need for more sophisticated risk management. We heard compelling arguments for advanced internalisation strategies – determining optimally whether to handle trades internally or hedge externally – and the necessity for systems that allow much faster reaction times to market flux. This isn’t just about speed, but about intelligent, real-time decision-making.
On the technology front, the pursuit of operational excellence is relentless. There’s significant industry momentum towards automatic volatility detection. The objective is to empower firms to react instantly to market shocks, potentially by adjusting or pausing pricing in real-time. This capability is no longer a luxury but a necessity for maintaining robust liquidity provision and market stability.
The dialogue around Artificial Intelligence (AI) was particularly insightful, highlighting a pragmatic industry view. There’s strong agreement on leveraging AI – often understood as advanced statistical analysis – for reactive tasks. This includes enhancing Transaction Cost Analysis (TCA), understanding client behaviors with greater depth, and boosting efficiency with tools like Large Language Models for trading support.
However, a line is currently drawn when it comes to AI autonomously making core risk decisions, such as devising hedging strategies. Concerns around transparency, potential front-running, and accountability mean that “explainability” in AI algorithms is paramount. The industry clearly favors proven analytical power over opaque “black box” solutions for critical functions.
These discussions in Singapore painted a clear picture: the FX industry requires robust, intelligent, and adaptable technological solutions. The emphasis on sophisticated internalisation, dynamic real-time risk controls, and practical AI applications for analytics and efficiency directly mirrors the challenges smartTrade Technologies is dedicated to solving. Our focus remains on delivering platforms that empower financial institutions to navigate this complex and fast-evolving environment with confidence and precision, turning market volatility into an opportunity for smarter trading.
If you would like to discuss any of these topics further or to see how smartTrade is helping clients navigate the changing FX landscape please do not hesitate to get in touch.