FX Liquidity Challenges Raised in New BIS Report
Posted: Sun Mar 26, 2017 1:01 pm
A study on the state of FX liquidity across foreign exchange markets published last week by the Bank of International Settlements is providing new insight into the foreign exchange market. The market, increasingly competitive thanks to years of technological progress, is facing technological, legal and regulatory challenges going forward, is the simple message.
The in-depth look into the latest developments in the market highlights algo market-making risks. Increasing worries related to black swan events are also a big challenge for the industry going forward. There is a pair of main drivers for the state of FX liquidity going forward, as identified by ... (read more)