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. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.
FOREIGN EXCHANGE

Financial institutions offer growth

The focus on credit, as well as a degree of regulatory uncertainty, appears to have led to an increase in the importance of sales to financial institutions, according to sources at major FX houses. The reasoning is that banks are happy to assume counterparty risk with other banks and FIs, particularly in emerging markets, but less willing to trade directly with buy-side counterparties. Another issue is the uncertainty surrounding the legitimacy of some derivative products – whether or not they have been missold has led banks to effectively seek to have credit disintermediated.


“We’re trying to partner with regional institutions as a way of distributing our products and especially our derivative capabilities,” one senior figure based in London tells the FiX. “I think it’s fair to say that we might often prefer to trade with what we’d term under MiFID professional counterparties,” he adds. It’s good to see that the FX market has once again come up with a neat solution to keep the business flowing.


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.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

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

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, 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

LOGIN NOW

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