Heather McLean
Heather McLean

Regional eFX Perspective - Southern Europe

Over the past three years the growth of the online foreign exchange market has become spectacular to say the least. With more than $1.5 trillion traded daily there is still room for growth as the number of providers offering this service increase. Southern Europe is behind other areas of the globe in terms of eFX, mainly due to a slow economic transition from traditional sectors such as agriculture, industry and construction. FX has been largely predominant in the Anglo-American regions, but is now starting to take off in southern Europe as these countries develop their financial markets and instruments and start to throw research and development cash in the direction of FX.

First Published: e-Forex Magazine 32 / Regional eFX Perspective / July, 2008

Although adoption is somewhat slower than other countries, Southern Europe is gradually starting to embrace eFX. Some of the reasons behind this include cultural, regulatory and economic challenges across the different countries in this area. Alberto Muñoz, chief analyst at portal, FXstreet.com, comments: “e-FX trading has just started in southern Europe and we think it's going to grow exponentially in the next two to three years, as there are more traders with better trading education and information looking for new opportunities and markets to trade.” John Vause, head of Global Link, EMEA, at State Street, states: “Certainly eFX in Southern Europe has gained acceptance in the interbank arena as a convenient means of accessing liquidity. Domestic banks in places such as Italy are familiar with the use of market platforms such as Reuters and EBS/ICAP, and also use other single bank proprietary products such as BARX or Autobahn FX. However, a large proportion of...continued

Exclusive Content

The full article is only available to current subscribers. Click here to sign in or subscribe by clicking here