Have Reuters and EBS lost control of FX?

The limited effects of a system breakdown at EBS suggest the two interdealer brokers no longer dominate FX price discovery. They had better watch out, there’s a new market paradigm on the block and it is hungry for their lunch. Lee Oliver reports.

IN A RECENT article for Euromoney’s weeklyFiX, Mark Warms, general manager of FXall’s European operations, highlighted the fact that many participants in the foreign exchange market believe that a new trading paradigm is starting to emerge. Does this mean that Reuters and EBS are losing their dominance in price discovery?

Until recently such a suggestion would have been summarily dismissed. The consensus was that although numerous viable trading platforms exist, ultimately they all depend on Reuters and EBS.

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