EuromoneyFXNews’ inaugural e-trading survey reveals that buy-side clients expect the move from voice trading to electronic trading to build momentum, with single-dealer platforms gaining favour as application programming interfaces stall.
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
What is important in choosing an electronic venue?
Reasons for using multi-dealer platforms
Reasons to use an MDP
Narrower bid-offer spreads
Demonstration of best execution
Depth of book
Internal execution policy requirement
Reasons for using single-dealer platforms
Reasons to use an SDP
Choice of counterparty/bank relationship
Reliability/stability of platform
Breadth of currencies
Breadth of product algo tools/analytics/charting/online chat
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% to 33% in the next two years.
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