Banks are still vital for FX
Liquidity provision may increasingly be a non-bank play, but credit remains a bank business
Banks remain vitally important for the orderly working of foreign exchange markets, despite a broad retrenchment from market-making activities as regulation, the fallout from the benchmark scandal and the aftermath of the Swiss National Bank (SNB) shock event last year constrain their ability to continue with traditional business models.
Historically, banks had a firm and comprehensive grip on FX markets, and they were the essential source of liquidity, but the last few years have seen non-bank
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