“Single-dealer platforms will hold their own in the e-FX future” — FX Week


Interesting piece in FX Week this week.

The article cites FX Week research showing that 60% of client electronic flow (both GUI and API) is now executed via SDPs.

It argues that, compared to a multi-dealer platorm, an SDP ‘is better suited to client service, which is where the battles of the future will be fought, because execution is rapidly becoming a commodity.’

It also points out that, as new regulation bites, the SDP will be 

a key tool in aggregating liquidity fragmented by today’s market dynamics in addressing the future demands of cross-asset trading, delivering product innovation and enabling banks to maintain their position in the value chain in the new regulatory environment.

…something that has often been pointed out here.

Well worth a read.

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