An earlier post this week looked at the initial findings from the EuroMoney FXNews inaugural FX buyside survey.
The survey finds that voice trading is likely to fall below 15% as more bank platforms come online, and more bespoke currencies move from voice to online trading.
The survey then reveals that:
Single dealer platforms growth rates to outstrip multidealer platforms by as much as seven times!
Demonstration of Best Execution is one of the key reason cited for using multidealer platforms, but now single bank platforms are offering execution quality reports as part of their algorithmic suite of services.
We have commented before (here and here) that single bank platforms should do more to deliver TCA, and help their clients to demonstrate some form of “BestEx” as defined by their internal execution policy. That way, clients will find it easier to migrate off multidealer platforms. Looks like these services are now starting to come on stream, removing a strong reason for using multibank platforms.
Of course, the post trade services of multibank platforms are also strong, but so are those provided by the top tier etrading banks.
Finally, perhaps FXall shareholder banks having reviewed their recent client FX volumes/channel, can see the writing on the wall, and are taking advantage of the IPO as an opportunity to sell their stakes in FXall – and they should know, as they see their client volumes on their own SDP!