Time to get with the program

Banks are also improving the way they offer existing products. Deutsche's renowned Autobahn has seen an upgrade that enables customers to alter the prices they see streamed to them.

These developments are just the latest in a constant stream of innovations introduced by banks in their constant struggle to keep up with an increasingly demanding and sophisticated customer base. But they will need to look more radically at what they offer if they are going to be able to stay ahead of a rapidly evolving market-place.

There has been relatively little movement from banks in the field of program trading. The biggest players have been updating their APIs to enable customers to get access to prices without going through their platforms, but they are being selective about the type of business they want to take.

Aggressive hedge funds that are nimble enough to be able to adopt the latest, fastest technology quicker than lumbering monolithic organisations present a dilemma for banks. They need to establish how they ensure they offer what customers want and ensure they attract as much flow as possible without putting themselves at risk from predatory funds looking to arbitrage loose pricing.

There is a danger that banks are putting their heads in the sand on this issue. There is a temptation to choose to ignore this type of business. If banks are content to continue looking to trade in the ways they have become accustomed to, they ultimately face decline, as customers and other banks adopt models that their systems are incompatible with.

However, rather than treat it as a threat, as the original e-FX revolution was seen as an opportunity for banks, so must the new ways of trading. There is a real chance for banks to drive up volumes, significantly cut costs and attract flow away from other asset classes if they can grasp the nettle and adopt the technologies and know-how associated with new models of trading.