The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

A true exchange for forex

Last year it was equities. Last winter it was bonds. Now this summer foreign exchange, by far the largest market, finally embraces e-commerce. Single-dealer platforms will still be needed, but might only account for 25% of the volume. The seven-bank consortium behind has grabbed all the headlines this month, but it is already a year or more behind two independent ventures, and years behind State Street’s FX Connect, which since April has allowed other dealers on to the system. Why has it taken so long for forex bankers to accept the multi-bank approach, and what are the consequences of leaving it this late? Antony Currie investigates

Josh Levy never intended to be part of an uprising. He left his job as a currency trader at Goldman Sachs early last year to join Valhalla Forex, based just a few minutes' walk from his former employer, on the 15th floor of a building on downtown Broadway in New York.

The grandeur of its Wagnerian name belies its size: it is a small organization, specializing in proprietary trading in the forex spot markets, although it also dabbles in forwards.

Within weeks he had become exasperated with his dealers and market-makers. "We had good price discovery brokers so we knew within three pips where the price was," says Levy. "But the bid-ask quotes we were getting from the dealers were often quite far off the fair-market value. If the price was really 90-93 sometimes, especially in fast markets, we'd get prices which were four or five pips off the market, sometimes more."

Having worked at a broker-dealer, he ought, one might think, to have been better prepared.

For a start, Levy does not include Goldman in the group which so frustrated him. "I've been on the other side, but I also didn't think things should be as bad as they are.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree