Boston, May 2, 2019 – The global foreign exchange marketplace is one of the most vibrant markets in the world, and several trends have attracted the attention of institutional investors. The rise of prime-of-prime brokers and the success of nonbank liquidity providers have changed the FX market structure and introduced new ways of doing business, while the proliferation of algorithmic trading has reached a tipping point and has led to fierce bank competition in the technology arena. Despite the many positive technological developments, however, several challenges still loom.

This report analyzes and discusses a variety of FX themes, such as changes to average daily volume along the lines of geography, FX instruments, and market participant type. It is based on interviews with over 20 FX market participants, including buy-side institutions, banks, dealers, electronic communication networks, multidealer trading venues, clearinghouses, and supporting technology providers. The report also uses publicly available data published triennially by the Bank for International Settlements as well as semiannually reported jurisdictional data.

This 45-page Impact Report contains 28 figures and four tables. Clients of Aite Group’s Institutional Securities & Investments service can download this report, the corresponding charts, and the Executive Impact Deck.

This report mentions 360T, Abu Dhabi Investment Authority, Australian Securities and Investments Commission (ASIC), Bank for International Settlements (BIS), Barclays, Barracuda FX, BestX, Bloomberg, Broadway Technology, Cboe FX, CFH Clearing, Citadel Securities, Citigroup, CME Group, Commodity Futures Trading Commission (CFTC), Credit Suisse, Deutsche Boerse, EBS, European Securities and Markets Authority (ESMA), Forex Capital Markets, FastMatch, FXall, FX Connect, Gain Capital, GTX, FastMatch, FX Connect, Goldman Sachs, IG, Interactive Brokers, LCH.Clearnet, Jefferies, J.P. Morgan, LMAX Exchange, LMRKTS, National Futures Association (NFA), Newedge, Oanda, Refinitiv, Saxo Bank, Societe Generale, State Street, TD Ameritrade, TPICAP, Tradition, XTX Markets, and UBS.