FX Week Europe: 'Patchy' liquidity in FX a concern for the future
A reduction in the number of liquidity providers in foreign exchange is creating an unstable market environment that could put the industry in a dangerous position in the event of another financial crisis, according to senior industry officials who spoke at the FX Week Europe conference in London on Wednesday.
Discussing the regulatory constraints facing the market-making capacity of banks as well as the rise of non-bank market-makers, both buy-side and sell-side traders expressed concern that
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