Mark Warms General Manager, Europe, FXall
Mark Warms General Manager, Europe, FXall

Foreign affairs – why relationships are still at the heart of FX trading

Mark Warms looks at why relationships remain important in FX trading and how clients can use technology to manage their relationships more effectively.

As the latest BIS survey demonstrates, growth in FX volumes is being driven by organizations from all market segments - banks, corporations, asset managers and active traders have all stepped up their foreign exchange trading. With the market becoming more diverse, banks and other service providers need to deliver solutions that serve all these client groups, regardless of their foreign exchange requirements.The majority of forex trading is done through relationships, which have long been the backbone of the foreign exchange markets.More recently we have seen the introduction of marketplace models, which appeal in particular to the active trader community. Each model has certain advantages. For example, marketplaces can offer anonymous trading, but may not have the depth of liquidity, range of currencies or post-trade services available on relationship-based models. Conversely, trading through relationships gives dealers access to deep liquidity in unlimited currency pairs, but is not anonymous unless clients...continued

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