The migration from voice trading to electronic execution in foreign exchange markets continues to build momentum, and the results of the EuromoneyFXNews e-trading survey show that buy-side clients expect this growth to continue.
Voice trading makes up, on average, 18% of all executions the survey shows. Respondents expect this to fall to less than 13% in the near future.
| What eFX clients want |
| Respondents’ breakdown of venue/format of FX execution |
|
|
Current average
|
Expected average
|
|
Direct API:
|
26.10%
|
30.24%
|
|
MDP:
|
41.09%
|
38.80%
|
|
SDP:
|
32.65%
|
36.18%
|
|
Voice:
|
17.91%
|
12.77%
|
| What is important in choosing an electronic venue? |
| Reasons for using multi-dealer platforms |
|
Rank
|
Reasons to use an MDP
|
Score
|
|
1
|
Narrower bid-offer spreads
|
97
|
|
1
|
Demonstration of best execution
|
97
|
|
3
|
Depth of book
|
86
|
|
4
|
STP
|
51
|
|
5
|
Internal execution policy requirement
|
27
|
|
6
|
Anonymous trading
|
26
|
|
7
|
Integrated workflow
|
16
|
| Reasons for using single-dealer platforms |
|
Rank
|
Reasons to use an SDP
|
Score
|
|
1
|
Choice of counterparty/bank relationship
|
124
|
|
2
|
Reliability/stability of platform
|
77
|
|
3
|
Breadth of currencies
|
70
|
|
4
|
STP/Integrated workflow
|
46
|
|
5
|
Breadth of product algo tools/analytics/charting/online chat
|
41
|
|
6
|
Pre-trade research
|
17
|
|
7
|
Support/help desk
|
16
|
|
8
|
Integrated workflow
|
10
|
| Source: EuromoneyFXNews e-trading survey 2012 |
|
The results also show that customers are moving more electronic volume flow towards single-dealer platforms (SDPs), with their share of turnover expected to grow from 29%...
