The ongoing FX technology arms race

The technology arms race in foreign exchange shows no signs of abating, with a number of investment banks continuing to recruit IT professionals in spite of the difficult market conditions.

As the latest figures from the Bank for International Settlements show, FX trading volumes in London have soared. What's more the use of e-trading, algorithms and complex event processing software have all entered the fray, making having a cutting edge e-Commerce platform integral.

"There's remains a robust demand for people who have both domain and asset class expertise within FX," says Paul Bennie, director of IT in finance headhunters Bennie MacLean. "There's a need to constantly evolve FX e-Commerce platforms, and senior technologists who can deliver and implement these projects are still highly sought after."

At the senior end, a recent high profile move is that of Eric Hirschhorn, formerly global head of FX technology at Citi, who moved to Morgan Stanley as CTO of fixed income in August.

Morgan Stanley is also hiring lower down the ranks in FX, while recruitment sources suggest that both Citi and UBS are both looking to take on techies in this area.

Graham Barber, director of IT in finance headhunters DCM Executive Search, says that much of the focus currently is for development staff.

"There's still an appetite to take on senior FX professionals within most investment banks, but bonus considerations at this time of year means many firms are waiting until the new year to commit to hiring these people. Banks are instead recruiting junior developers or bridging the gap with contractors," he says.

Even excluding bonus considerations, it's becoming increasingly expensive to hire FX technology professionals. Bennie suggests that 18 months ago the going rate for a VP in this area was 80-90k, and this has since risen to 100-120k. Meanwhile, director level hires are coming in at 175k, with the possibility of a 50-100% bonus.