Following its 2024 win, UBS once again stands out as the leading liquidity provider: reflecting the bank’s ability to combine consistency, technology and breadth of coverage to deliver liquidity across diverse market conditions.
UBS has built its FX franchise around the principle of being a trusted counterparty both when markets are calm and when they are volatile. During the past several years, the bank has expanded its capacity across spot, derivatives and precious metals, while making significant investments in the electronic infrastructure that underpins pricing and execution.
The bank’s approach to liquidity provision is shaped by agility, resilience, scalability and comprehensiveness – qualities that are embedded in the UBS Neo platform and in the firm’s market-making business, enabling the bank to maintain a competitive position among the top global providers of FX liquidity.
At the heart of UBS’s approach is the consistent delivery of liquidity in stressed markets, a feature that differentiates leading providers from their peers. During episodes of dislocation, the ability to keep streaming prices and risk-managing flow becomes a test of technology and market expertise. UBS has sought to demonstrate that its pricing engines and risk controls remain robust in these periods, a fact that has underpinned its recognition across multiple Euromoney FX awards in recent years.
Eric Li, global head of FX trading, explains: “We continue to grow in volumes and market share because clients have confidence in our performance even when conditions are challenging. The consistency of our liquidity provision, whether in calm or volatile markets, is what defines our strength as a partner.”
Building bigger and better
The integration of Credit Suisse’s FX activities in 2023 has also bolstered UBS’s scale. The combination expanded the bank’s presence in corporate and wealth-management segments and extended its geographical footprint in regions such as the Middle East. This broader base has allowed UBS to recycle risk more effectively across client groups, deepening its pool of liquidity and reinforcing its role as a counterparty of choice. While the strategy of the FX business has not fundamentally changed, the merger has accelerated investments in trading technology and platforms, providing further depth to the liquidity on offer.
Product scope is another cornerstone. UBS makes markets across spot, non-deliverable forwards (NDFs), swaps, options and precious metals, giving clients access to liquidity across a wide range of instruments and currencies. The bank has continued to extend its streaming coverage to more pairs, including frontier and emerging markets (EMs) currencies, aligning its offering with the evolving needs of clients whose exposures increasingly stretch beyond the most-traded G10 currencies. This expansion has included adding pairs such as the Vietnamese dong and broadening support for Middle Eastern currencies such as the dirham and riyal.
The consistency of our liquidity provision, whether in calm or volatile markets, is what defines our strength as a partner
Eric Li
The electronification of FX markets has been a major driver of how liquidity is delivered. UBS has invested heavily in reducing latency, upgrading its order-acceptance logic and refining its pricing models. These enhancements support faster execution and greater resilience, particularly in environments where spreads are compressed and competition is intense. The bank has also applied its expertise in spot and NDF trading to the swaps market, introducing more systematic streaming and risk management in areas that have traditionally been voice-dominated.
Options are another area where UBS has sought to differentiate itself. The bank has developed algorithmic volatility curves and pre-trade analytics to improve price formation, while also expanding product capabilities, such as offering cash-settled platinum and palladium options in London. By electronifying more of the options workflow, UBS has enabled clients to access liquidity more efficiently even in complex structures, building on its long-standing strength in FX derivatives.
UBS Neo, the single-dealer platform, has become the delivery channel for liquidity, analytics and self-service tools. It integrates research, commentary and execution in one environment, while giving clients greater control over the trade lifecycle. Enhancements such as real-time volume charting and expanded self-service functionality allow clients to engage with liquidity in ways that suit their trading style, whether through APIs, the platform interface or mobile access.
The recognition of UBS as the world’s best FX liquidity provider reflects more than headline volumes or market share. It acknowledges the ability to provide consistent liquidity across instruments, time zones and market conditions. The firm’s strategy has been to build resilience into its systems, extend its reach across products and currencies, and align platform development closely with client feedback.
