The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

FX: Financial extranets become all-important in a world of fragmented liquidity

Fragmented liquidity has helped make financial extranets fundamentally important tools for global FX market players, but traders need to do their due diligence in picking the right fit for their strategies.


Financial extranets have become a fundamental component of the business done by buy-side and sell-side FX trading firms, although traders need to consider that not all offerings are the same.

A financial extranet provides access to a service or liquidity pool no matter where it is hosted.

In cases where the network provider has a point of presence in a datacentre and provides connectivity between multiple datacentres, trading firms can take advantage of that infrastructure to have one integrated and centrally managed connectivity solution combining local cross connects and low-latency, inter-datacentre connectivity.

This is particularly appealing to firms trading in more than one location at the same time.


Allowing firms to directly access multiple services over a single infrastructure optimizes processes and reduces costs, observes Yousaf Hafeez, BT’s head of business development for financial technology services.

“Crucially, extranets allow firms to automate the FX trading cycle by providing access to pre-trade, trade and post-trade applications,” he says.

Trading firms need support to maintain operations in a key datacentre, whether that is in managing their cross connects in a single centre or hosting servers in multiple centres and providing market access.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree