Panel findings highlight evolving role of buy-side

Panelists including banks, trading platforms and buy-side participants, agreed that the buy-side has been the primary driver behind the growth of algorithmic trading in FX.

"It's becoming much less of an 'us and them' situation between buy-side and sell-side. There are now more opportunities to play any role in the market," said Mark Warms, general manager at trading platform FXall.

Indeed, the advent of new market technology meant Deutsche Bank found it increasingly difficult to keep control of the liquidity it offered, said Ian O'Flaherty, head of e-commerce at the bank. This led the firm to take even more care regarding where its liquidity was re-distributed.

As the topic moved to liquidity, panellists debated the role location and latency played in netting market movement. Matching engines were referred to as a key factor in gaining access to liquidity pools.

Interdealer broker Icap's Steve Toland referred to EBS's three order matching systems, which ensure users equal access, and added that customers were pressing for, and EBS was delivering, faster matching times in order to further level the playing field.

But Dsquare's Damian Mitchell indicated that regardless of players' current situation with liquidity, market participants will soon begin to enjoy similar access, with speed and connectivity fast becoming a commodity.

The panel debate was hosted by technology vendor BT Radianz.