Tag: non banks

non banks

Competition Continues to Heat Up Amongst Liquidity Providers

As more non-bank liquidity providers become active in the FX space, firms need to find ways to differentiate themselves to their counterparties, says Giovanni Pillitteri, portfolio manager at HC Technologies.

“I do think that there will be certain consolidation in some counterparties,” he said in response to a question about increased competition amongst liquidity providers. “If your edge is only based on speed, that’s going to be commoditised, so you need to have the full spectrum of solutions and offer that full spectrum of solutions to counterparties to be able to compete in this environment.”

Pillitteri also emphasised the importance of having a broader, cross-asset approach to trading in order to be a successful FX liquidity provider.

Non-Bank Firms Continue to Go Mainstream

FX market structure changes are behind a change in approach on the part of several non-bank market makers, and the direction of travel is very much the mainstream.

“The market structure has changed and our model has definitely changed with it,” said Laine Litman, head of Virtu Financial’s customised and disclosed liquidity offerings in FX and fixed income, in kicking off the second panel on liquidity provision at Profit & Loss Forex Network Chicago. “What liquidity consumers needed two or three years ago has changed and with that, we have had to look at our models as well as at how we interact with markets.

P&L Talk Series with Franck Mikulecz

Franck Mikulecz, managing director of the newly established clearing house FXCH, explains why and how his firm is using distributed ledger technology to clear spot FX transactions. Profit & Loss: You’ve launched a clearing house to clear spot FX using distributed ledger technology. Why? Franck Mikulecz: We think that in some respects, the FX market […]

And Another Thing…

I don’t think there is anyone out there who doesn’t think the FX market performed well under the stress of the surprise outcome from the UK referendum last week, but I suspect the real test is only just starting. Don’t get me wrong, this is not one of my contrarian columns that will say the […]