Fixation on internalisation is ‘nonsense’, say banks

As major banks continue to internalise foreign exchange trading flow at the expense of turnover on primary platforms, dealers have defended the practice, and argued the increasing fixation on internalisation is ill-placed, as it allows them to offer better execution to ­clients.

"The only reason to care about internalisation is because you care about the market impact of client trades," says Chris Purves, global head of foreign exchange, rates and credit electronic trading at UBS in London.