Agency trading becoming a competitive differentiator in spot FX

A new report from GreySpark Partners, Trends in FX Trading 2014, has found that buyside firms are increasingly accessing spot FX liquidity by trading with other buyside firms within trading venues that were previously considered bank-only platforms.

Agency trading becoming a competitive differentiator in spot FX
Frederic Ponzo, Managing Partner of Greyspark

A new report from GreySpark Partners, Trends in FX Trading 2014, has found that buyside firms are increasingly accessing spot FX liquidity by trading with other buyside firms within trading venues that were previously considered bank-only platforms. It also found that at least three Tier I banks were providing DMA functionality via their single-dealer platforms into the leading inter-dealer spot venue EBS Market using algorithms, which are typically deployed by the bank to help buyside firms utilise the bank’s spot venue aggregator.

Commenting on what these finding mean, Frederic Ponzo, Managing Partner of Greyspark commented that, “The balance of power in the FX market is now shifting toward the buyside, away from the sellside and banks must continue to find new ways to compete with each other for client flow. The competitive battleground of the future is in the agency trading space.” More information is available at: http://research.greyspark.com/2014/trends-fx-trading-2014/