FX: Execution leads liquidity as biggest issue for traders – JPMorgan
The findings of JPMorgan’s 2018 e-trading survey underlined yet again the importance of effective execution policies and systems.
More than one in three (37%) of the institutional FX traders surveyed by JPMorgan late last year reported that best-execution requirements and precision of execution were the most pressing issues they faced on a day-to-day basis, ahead of liquidity (29%).
These findings are indicative of an FX market that has matured to a point where most customers have access to all the liquidity they need, and historically low levels of volatility have enabled market makers to confidently quote larger sizes at smaller spreads than ever before.
The next challenge is to develop trading strategies to take full advantage of this liquidity, which involves creating better tools for execution and for measuring execution quality, suggests Neill Penney, co-head of trading at Thomson Reuters.