Banks offer consistently cheaper FX liquidity than ECNs, says Pragma

While a single bank may offer a less competitive price than an ECN (electronic communication network) for any given pair at any given time, taken as a group banks overwhelmingly and consistently offer a better price for liquidity, Pragma says.

Pragma reported having found only three instances of multiple banks ceasing quoting during periods of high volatility in 2015 and 2016: the de-pegging of the Swiss Franc in January 2015; the extreme volatility of the New Zealand dollar in August 2015; and the sterling flash crash in October 2016.