Automation is fast becoming a defining feature of the foreign exchange (FX) landscape, argues Bart Joris, head of FX Sell-side Trading at London Stock Exchange Group (LSEG), in a recent article . As FX markets face mounting pressure from volatility, cost constraints, and regulatory demands, financial institutions are accelerating efforts to streamline workflows across the entire trade lifecycle, from execution to post-trade processes.
Joris highlights how fragmentation in FX infrastructure, with firms often relying on disparate systems for different stages of the trade, hampers efficiency. Automation, by contrast, enables tighter integration, reducing manual errors and operational risk while improving scalability and cost control.
The article underscores a shift toward centralised data management and real-time interoperability between systems. This not only enhances trade processing but also supports compliance and risk management, particularly in a regulatory environment that demands transparency and auditability.
Relying on manual intervention
While spot FX trading has seen high levels of automation, other products, like forwards and options, still rely more heavily on manual intervention. Joris notes that adoption is increasing in these areas, with the expectation that technological advances will eventually enable greater automation across more complex instruments.
However, the article also makes clear that automation is not about replacing human involvement but redefining it. With machines handling more routine, rule-based tasks, human oversight is shifting toward exception handling, strategic decision-making, and oversight of automated systems.
