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Foreign Exchange

Venue fragmentation set to continue, says FX veteran

MarketFactory chairman James Sinclair sets out the reasons why FX liquidity could fragment further, in a new white paper.

jigsaw-connection-fragmentation-600

Fragmentation of foreign-exchange liquidity has increased during the past five years and is set to persist as platform innovation continues and the market structure favours a growing number of trading venues, according to a new industry white paper.

James Sinclair 2-160x186
James Sinclair,
MarketFactory

Author James Sinclair, executive chairman and co-founder of FX trading technology provider MarketFactory, believes the proliferation of venues has been inevitable since the launch of ParFX, a bank-backed currencies platform hosted by interdealer broker Tradition that began trading in 2013. The launch of ParFX coincided with a number of other new initiatives, each with a unique strategy to attract and maintain liquidity.

Though some platforms have been more successful than others, FX trading is no longer restricted to a small selection of venues.


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