FX Invest Europe: Banks are retreating from market-making, managers warn
Investing in currencies has become significantly more challenging as banks have reduced their market-making activities in preparation for new requirements for bank capital, as well as the proposed ban on proprietary trading under the US Volcker rule, according to buy-side speakers at the FX Invest Europe conference in Zurich yesterday.
"Banks that were accustomed to being market-makers in the FX business were also accustomed to being lenders of last resort – or warehousers of risk – and operated
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