The FX market in 2025: Future-proofing FX

August 2025 in Industry Report

The second research report from LSEG FX in 2025 looks at trends in technology spend, innovation and next-gen solutions, managing liquidity fragmentation and automating FX workflows – all identified as important themes by 400 FX professionals globally.

This is a short teaser of the report, which is due to be released in September. Please scan the QR code [at the end of this article] to be among the first to receive ‘Future-proofing FX’ as soon as it’s published.

To what extent are the following a priority for your organisation in the next 12 months?
What are the main challenges facing your organisation in managing the fragmentation of liquidity?

Key research findings include:

Innovation and next-gen solutions like APIs, algorithmic trading, AI / machine learning and regulatory technology are key.

Asked to what extent certain innovations or next-gen solutions were going to be a priority within their organisation in 2025, APIs and connectivity was cited as a priority by 46% of all respondents.

These were of notably higher importance to buy-side firms (51%) than sell-side (36%).

Algorithmic / high frequency trading was cited by 45% of respondents overall, with 44% citing AI and machine learning and regulatory technology.

Higher trading costs as a result of liquidity fragmentation concern many respondents.

Market fragmentation continues to be a challenge for FX trading firms

Liquidity fragmentation has been a central theme for the FX market for many years, with 40% of respondents seeing it as a focus area. 

According to 37% of respondents prioritising FX liquidity fragmentation, the main challenge facing their organisations is the higher cost of trading.

27% prioritised managing disparities in data and information, but this was a higher priority for the buy-side (31%) than the sell-side (20%).

Scan this QR code or click on the link below to request the full report as soon as it’s published.