Decimalisation piles pressure on market-makers
The advent of decimalised pricing on major foreign exchange platforms such as Icap's EBS is hitting bank profits as the bid-ask spread is compressed, according to Dan O'Sullivan, co-head of global FX trading at Société Générale Corporate & Investment Banking (SG CIB) in London.
"Decimalisation narrows the bid-ask spread, which is an inevitable evolution for the business, but it places an added emphasis on our ability to retain or generate profitability on a per-unit basis," said O'Sullivan in an
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