• Drop in spot FX volumes recorded by the Bank for International Settlements in 2016 likely linked to a decrease in the amount of real economy trade taking place as opposed to being linked to a structural shift in the currencies markets.
  • Dedicated spot FX dealer-to-dealer liquidity pools are functionally extinct, and liquidity provision in spot FX has largely shifted to a select number of buyside firms specialised in price-making and risk warehousing.
  • A large number of spot FX trading venues and platforms now support buyside liquidity provision and all-to-all (A2A) trading models.

LONDON – 22 March 2017 – GreySpark Partners, a leading global capital markets consultancy, has published a new report — Trends in FX Trading 2017 — exploring how banks have become less central to the management of liquidity flows in the spot FX market due to the commoditisation and proliferation of prime brokerage (PB) and direct market access (DMA) services f