FX trade execution: complex and highly fragmented

Andreas Schrimpf and Vladyslav Sushko

BIS Quarterly Review, 2019

Abstract: The 2019 Triennial Survey shows that trade execution has undergone rapid change, with more diverse participants, new technologies and increasing complexity. Electronification advanced the fastest in dealer-to-customer trading. Dealers and customers navigated a highly fragmented market by leveraging technology to trade across electronic venues. Aspects of FX intermediation tilted more towards non-banks as new market-makers, albeit brokered by top dealers. Bank dealers continued to attract large flows to their own proprietary liquidity pools. Consequently, even though the market grew bigger as a whole, the share of trading activity 'visible' to the broader market declined.

JEL-codes: C42 C82 F31 G12 G15 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (11)

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