What do brokers want from their Liquidity Provider?

What do organisations really want from a Liquidity Provider? How have attitudes and priorities changed since SNB events? Leading London-based Prime of Prime Broker, Sucden Financial conducted extensive research to address these questions amongst brokers, banks, fund managers and professional traders across the globe. The results provide insight into current market requirements and, as Peter Brooks, co-head of e-FX at Sucden Financial explains, highlight a major shift in priorities.

First Published: e-Forex Magazine 62 / Expert Opinion / October, 2015

In order to remain at the forefront of the industry, we have always listened and responded to market feedback. When we conducted online research to gain market intelligence between 18 November 2014 and 14 January 2015, we obviously had no idea the SNB events would occur, completely changing the industry landscape. We repeated our research post SNB, between 14 May and 14 July 2015 to assess the change in attitudes. The 256 responses to the surveys, combined with our own insight from discussions with potential clients and industry influencers, provide us with a huge amount of confidence that we are able to meet all the new key selection criteria of brokers seeking to change Liquidity Providers - depth of liquidity, tight spreads, low counterparty risk and high levels of service.  Time for a change? According to our research, post SNB, 38% of brokers, banks and fund managers who responded to our survey have or are considering switching Liquidity Providers (LPs).  This confirms the general discussions...continued

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