Stephen Best Managing Director, Head of eCommerce Global Currency & Commodities Group J.P. Morgan
Stephen Best Managing Director, Head of eCommerce Global Currency & Commodities Group J.P. Morgan

FX Market Consolidation: Electronic trading a key driver?

Stephen Best looks at the question of whether the increase in electronic trading that has occured in currency markets over the past few years will lead to increases in market consolidation

First Published: e-Forex Magazine 15 / Leader / July, 2004

Will the increase in electronic trading that has occurred in currency markets over the past few years lead to increases in market consolidation? Or will the acceptance of technology by buyside participants lead to more changes in the way that buyside and sellside interact?Many banks covet the potential big deals associated with large corporate and investor clientele; it is an interesting irony that, with the exception of the largest global players, the revenues generated by the currency operations of most banks would qualify their FX operations as mid-market or small market clients. For this reason the sellside must continue to balance a need for continued investment in infrastructure with the fiscal realities imposed by their bosses. eTrading technologies have and will continue to play a key part in this issue.Growing buyside interest While electronic trading amongst sellside Foreign Exchange participants became widespread over a decade ago the buyside came to the table much more slowly. It is no small...continued

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