It is one of the oldest questions facing a trader – how best to work out of a position involving two currencies that are rarely, if at all, supported by most market participants. In the deep and distant past, when FX markets were predominantly voice-traded and risk was managed on a deal-by-deal basis, this question […]
Profit & Loss talks to Vibhanshu Bahuguna, regional manager, APAC, at TradAir, about how technology is changing the FX businesses of regional banks, how firms should be differentiating between various white label product offerings and where to expect growth amongst EM currencies. Profit & Loss: The latest BIS figures show that the volume of FX […]
Market making in emerging market currencies is a key way for liquidity providers to differentiate themselves in an increasingly competitive G3 landscape, says Kevin Kimmel, global head of e-FX at Citadel Securities.
“Where there’s a lot of demand and where there’s also an opportunity to differentiate yourself as a liquidity providers is in the less liquidity currencies, in the Scandies, in Ems, where you don’t necessarily have as many people with really tight top of book liquidity,” he comments
In contrast, G3 spot FX market making has become so commoditised and the pricing is so tight already that Kimmel says that he is unsure whether a new market maker pricing just these currencies would really add significant value to the overall FX ecosystem.