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. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

EBS primed for change in online FX

Bank FX traders are up in arms about the plans of EBS, the interdealer FX broker, to allow hedge funds onto the platform. EBS says the pilot phase, which ended last month, was a success. Bank traders say it will create unstable trading conditions, and are beginning to talk about taking their liquidity elsewhere

EBS's client platforms | The client experience

Banks are set to lose spread revenue trading foreign exchange, face a heightened risk of being left holding more loss-making positions and could bear the brunt of any collapse of an FX trading hedge fund.

These are the fears FX traders at some of the leading banks are entertaining now that their largest inter-dealer market-making system, EBS, is pushing ahead with plans to allow buy-side clients to trade on the platform alongside them. It's even prompting some traders to question their commitment to market-making on the platform they set up. Some are talking about taking their liquidity elsewhere.

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to Euromoney.com and Asiamoney.com analysis and receive expertly-curated updates direct to your inbox.

 

Already a user?

Login now

 

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