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!
Filed under: FX, MDP, Paul Blank, Single-Dealer Platforms, Survey Results, TCA |
SingleDealerPlatforms.Org 
[…] to stand at 119% (see red line in chart below).This seems to be alignment with findings from the EuroMoney FXNews survey that sees SDPs as the biggest winners in continued client adoption of eFX […]
[…] 19, 2012 by Paul Blank Financial News is running a story today (which we covered on 1st February here) regarding a recent EuroMoneyFX News survey, which shows that single dealer platforms were growing […]
[…] Growth in SDPs continues to outpace mutli-dealer platforms, as global ‘flow monsters‘, and regional banks continue to invest heavily to upgrade their client facing SDPs, as they seek to better differentiate their offerings, and provide more client centric ‘workflow’ solutions that will help them retain and grow client relationship flows. Bank of England FX Survey Data ($bln/day) […]