In its quarterly report, the Bank for International Settlements (BIS) revealed that falling market volatility has prompted some global banks to route more volumes onto their internal platforms, which has led to a drop-in turnover on some of the world’s biggest currency-trading platforms over the past three years.
Key Quotes (via Reuters):
“Electronic trading between banks on the world’s biggest platforms — owned by Refinitiv, partly owned by Thomson Reuters and EBS, part of the CME Group, among others — has fallen by 7% to $368 billion per day in 2019 from a similar survey three years ago.
The BIS, known as the central bankers’ bank, noted these electronic inter-dealer brokerage systems, which are central to FX trading, now constitute only for a small portion of the turnover in the market even though they remain essential in price discovery.
This trend has also been helped by a drop in currency market volatility to record lows. For example, trading ranges in the euro/dollar last week, the world's most actively traded currency pair, was the narrowest in two decades.”
The BIS said: The falling share of inter-dealer trading has gone hand-in-hand with a handful of banks coming to dominate FX volumes.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.