By Frances Maguire
By Frances Maguire

Single bank FX platforms will they keep powering ahead?

Despite new research showing a slight shift towards multi-dealer platforms, the demand for single bank portals, and relationship-based pricing, is still high, especially in times of crisis. Frances Maguire examines how the continued investment by banks in their platforms is ensuring they continue to grow.

The importance of liquidity was severely highlighted during the recent financial crisis and the need for solid credit lines, liquidity and relationship based pricing in times of uncertainty, for both those customers using multi-bank platforms, for best execution, and single bank platforms, became apparent.Andrew Cohen, global head of e-Commerce marketing, at BNP Paribas says that during the crisis there was a noticeable flight to quality, with clients wanting to trade with highly rated resilient banks. This resulted in a large increase in customers trading over the traditional channel (phone) - the trades were large in nature and required execution excellence. He says: “I think it has shown the world that the FX business is still relationship driven. Despite the increasing volumes of business being done electronically, clients still want a sales person at the end of the phone, therefore showing that voice single bank and multi bank platforms compliment each other.” “In times of extreme...continued

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