By Kieran Fitzpatrick,   Head of Foreign Exchange at Broadway Technology
By Kieran Fitzpatrick, Head of Foreign Exchange at Broadway Technology

In FX, regional banks look inward for growth – and create new opportunities for global institutions

Having shown their resilience in the early days of the pandemic, bank FX trading departments are turning their sights back towards the operational developments that will ultimately secure their long-term viability.

Having shown their resilience in the early days of the pandemic, bank FX trading departments are turning their sights back towards the operational developments that will ultimately secure their long-term viability. For super-regional and country-champion banks, this question becomes one of focus and differentiation. Which markets to prioritise? Is this profitable business? Does it fall within operational and regulatory best practices? These are valid considerations. Super-regional banks are more than capable of running such a business, but face more limitations. They don’t necessarily have the scale of global institutions when it comes to liquidity. And, with staff continuing to work remotely, providing 24/7 coverage presents logistical challenges.  What super-regional and national banks are realizing is that their strengths lie in their unique client franchises and providing full coverage around their local currencies. By focusing more resources on the respective currencies of the areas...continued

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