Richard Willsher
Richard Willsher

Scandi squeeze

The Nordic FX markets continue to adapt quickly to new e-trading trends. But local service providers are caught between competition from international banks and demands from their increasingly technology driven customers, writes Richard Willsher.

The Nordic market is Denmark, Norway, Sweden and Finland. With the exception of Finland, which is part of the EUR, the three Scandinavian currencies, DKK, NOK and SEK, form a discrete currency group. The latest Bank for International Settlements Triennial Central Bank Survey of global foreign exchange turnover in April 2016, showed that added together they accounted for just 4.7 per cent of average daily global turnover. The total so-called percentage shares add up to 200 rather than 100 to account for the two currencies involved in each transaction. SEK’s share was largest at 2.2 per cent, NOK’s 1.7 per cent and DKK 0.8 per cent.  Troels Estrup “Voice is critical, especially in Scandis. I don’t think we’ll ever get to 100% E because of these illiquid currencies that we trade in.” The specialist nature of this Scandinavian group provides the dominant local liquidity providers, Danske, DNB, Nordea and SEB with their competitive advantage. Their main...continued

Exclusive Content

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