The currency markets are chaotic and they are likely to become even more so over the next ten years as nations, increasingly unpeg themselves from the dollar and other currencies. It is likely that many will look for a different system that bypasses the US clearing banks and indeed they may well return to using the gold standard as an alternative.
Advancements in technology will undoubtedly make a significant difference to currency trading and has the potential to fundamentally disrupt the industry entirely. Technology developments have overturned countless industries over the last decade and currency markets will be no exception. At its core, technology will enable data to be collected, analysed and then provided to traders in a way which allows multiple variables to be compared in real time. This will enable the true value of currency to become far more transparent.
Although the industry suffered from the impact of High Frequency Trading (HFT), which allowed securities to be bought and sold in a fraction of a millisecond and arguably caused the Flash Crash in 2010, the next decade will see a more mature technology emerge. The analysis of Big Data will enable a more responsible use of HFT, driven by a processed response to accurate information and not on the knee jerk reaction of traders.
The collection and then application of Big Data analytics will in the process transform the industry. It has the potential to contribute to overall liquidity and to create a new paradigm that could even help to protect sovereign currencies from speculative attacks.