eFX - intro

FX trade execution: complex and highly fragmented - BIS review

the market grew bigger as a whole, the share of trading activity `visible´ to the broader market declined.

https://www.investopedia.com/ask/answers/042315/how-do-currency-swaps-work.asp#:~:text=FX%20Swaps%20and%20Cross%20Currency%20Swaps&text=Technically%2C%20a%20cross%2Dcurrency%20swap,payments%2C%20but%20not%20all%20do.

• Electronification advanced most rapidly in dealer-to-customer trading, while the electronic share of interdealer trading decreased.

Activity has also gravitated more to dealers’ proprietary liquidity pools and away from primary inter-dealer venues
Yet there are signs that fragmentation may be reaching its peak

• A rise in intermediation within dealers’ proprietary liquidity pools contributed to a decline in the share of “visible” FX trading in spot markets.

This decline in electronic inter-dealer trading was driven principally by internalisation, whereby dealers temporarily warehouse risk arising from client transactions until it is offset against opposing client flow

• Customers and dealers responded to market fragmentation by executing trades across a large number of electronic venues.

during periods of stress, FX dealers might ration liquidity and favour clients with whom they have a strong relationship, such as those
using their single-bank platform

https://events.fx-markets.com/bestbanks

https://www.euromoney.com/surveys/foreign-exchange-survey

https://www.db.com/news/detail/20210707-deutsche-bank-regains-top-3-ranking-in-euromoney-fx-survey?language_id=1

• not important?

https://www.euromoney.com/article/b1lp47n3p6t3zf/fx-survey-2020-multi-dealer-platform-rankings