Electronic trading Percentage
of inter-dealer volume |
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Electronic trading Percentage
of dealer-to-client volume |
Some 90% of trading of spot currencies in the interbank FX market is expected to be done electronically by 2007, up from today's level of 60%, according to new research. Boston-based research and consultancy firm Celent Communications also predicts that dealer-to-client volumes will be 70% electronically traded over the same period, up from 43% now.
The inter-dealer spot market, which trades $301 billion a day, has historically had a higher adoption rate of electronic trading than the dealer-to-client market.
Bulge-bracket banks realized earlier on that technology could significantly reduce errors and improve efficiencies. They also realized that if they did not accept electronic trading and set up a platform they could own, then they risked Reuters dominating the business. So they...
