Richard Willsher
Richard Willsher

Regional e-FX perspective on Central & Eastern Europe

The countries of Central and Eastern Europe (CEE) are often characterised as emerging markets. Yet this masks a two-speed region where electronic foreign exchange trading is common and well developed in some local markets and less so in others.

The consensus view is well summarised by head of global sales at Hotspot FX, John Miesner, “Traditionally the FX space in Central & Eastern Europe has been dominated by voice or direct inter-bank execution, particularly as you go further East into the Ukraine, Baltics and Russia. This way of executing FX has dramatically changed in the past five years. Specifically since the 2008-09 downturn, requirements for best price execution, deep liquidity, and, in some cases, anonymity have become incredibly important and relevant.”  Miesner goes on to highlight the role of international banks in the region. A recent Euromoney survey found for example that Deutsche Bank holds a 14% share of the foreign exchange market while another 13% belongs to Citi and nowhere is their influence more apparent than in the region’s largest and most advanced  e-trading market, Poland.  Roughly three quarters of Polish banks are owned by overseas banking groups – Commerzbank owns Brebank,...continued

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