Electronic FX talent must be rewarded

Going through the entries with the judges I was struck by the huge amount of innovation that banks and vendors are driving through in this area. By its very nature, electronic FX is a fast-moving part of the industry. Constantly updated features and rapid development of capabilities designed to offer a more complete trading solution to the end-user are to be welcomed.

However, there is a danger of banks and vendors becoming overly concerned with offering the latest technology at the expense of getting the basics right. The judges on more than one occasion when citing good service said it was the staff that made the difference. So having an excellent post-trade offering that delivers cross-asset processing and STP settlement at the touch of a button is all very well. But if the contact the customer has at the bank leaves and is replaced by someone who doesn't know the ins and outs of the system, the best technology in the world can become practically redundant.

So it's back to the old chestnut about finding and keeping the right staff. As our Trading places column shows, this is no easy task. Comings and goings between banks will never stop, but banks would do well to recognise that e-FX talent is particularly precious and should be nurtured as such. Staff are increasingly being attracted to the new, smaller and more dynamic businesses that are able to make headway into the FX industry rapidly.

Banks and vendors wanting to hold onto talent that is capable of recognising new opportunities need to be able to give these staff the opportunities to put ideas into practice. This is often likely to be difficult at institutions where the deadening hand of bureaucracy and risk aversion stifles creativity.

However, if established players are to remain at the top of the tree, they will need to find a way of encouraging staff to deliver innovation. If they do not, they should be prepared to see their best and brightest leave, taking their best ideas with them.