Democratisation of risk masks volume discrepancy
More market participants are willing to take on risk while dealers shy away
The surge in the number of clients willing to take on risk is pushing banks to move towards the agency model and driving underlying growth in daily trading volumes, despite lacklustre activity at top-tier banks and established trading platforms.
In August, data from industry utility CLS showed a 4% rise in average daily values month-on-month and a 9.1% increase year-on-year, while average daily volumes were also up by 11.9% from July. Yet, over the course of this year, the majority of trading
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