Dr Ralf Donner

FX algos counter liquidity mirage claims

May 2025 in Market Watch

Reports citing the potential of a ‘liquidity mirage’ in the FX market and the availability of liquidity during times of crisis prompted concerns among some algo clients. Dr Ralf Donner, Head of Marquee Execution Solutions at Goldman Sachs, argues that recent volatility has served to demonstrate that the opposite is true and leading algo providers are in fact successfully ensuring that liquidity provision for algo execution is more robust now than ever before.

The claims, which surfaced in March, stem from concerns about the impact of the ongoing migration away from the primary FX markets and declining volumes on these venues, which Donner explains is correct and is borne out of the data with no sign of a let up. But the reports go on to suggest that this can then lead to a problem for traditional banks if they are then forced back to these traditional sources of liquidity during volatile periods, The claims, which surfaced in March, stem from concerns about the impact of the ongoing migration away from the primary FX markets and declining volumes on these venues, which Donner explains is correct and is borne out of the data with no sign of a let up. But the reports go on to suggest that this can then lead to a problem for traditional banks if they are then forced back to these traditional sources of liquidity during volatile periods,

The claims, which surfaced in March, stem from concerns about the impact of the ongoing migration away from the primary FX markets and declining volumes on these venues, which Donner explains is correct and is borne out of the data with no sign of a let up. But the reports go on to suggest that this can then lead to a problem for traditional banks if they are then forced back to these traditional sources of liquidity during volatile periods,

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