Philippe Buhannic CEO of TradingScreen
Philippe Buhannic CEO of TradingScreen

Leader – What’s a customer? Electronic FX converging the Buy and Sell-side.

Philippe Buhannic examines the new FX market structure and how the role of the buy and sell-sides will continue to blur further in the future.

Historically, Foreign exchange, almost certainly the oldest financial business, was organized around three types of players: Clients carrying underlying FX exposure, Banks providing prices and credit to these Clients and Inter Dealer Brokers (IDB) insuring information flow among Banks and matching of the banks interest. This structure, traditional in OTC capital markets, has been eroding quickly in the last few years and has been replaced, practically if not officially, by a new market structure that integrates the technology advances of E-FX and better answers the new requirements of the market participants. This new structure, described below, drastically modifies the market by reorganizing it around three key competences: Liquidity provider, Credit provider and System provider.This evolution has fundamentally affected the traditional definition and role of Buy side and Sell side players. Some players, such as very large hedge funds, have the know-how today considering many of them were former bank...continued

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