FX Markets Keep an Eye on E-Trading While Expanding their Focus

Buy-side participants in the FX market are increasingly focusing on the performance of FX trading and the need to improve it. This ongoing trend will manifest itself in a variety of ways, including, but certainly not limited to, the adoption of order management systems (OMSs), the use of algorithms when executing trades and the implementation of strategies that limit the impact of large orders.

Coalition Greenwich conducted interviews with 1,901 FX investors around the world between October 2020 and January 2021. Participants included asset managers, hedge funds, corporates, regional banks, and government entities. Coalition Greenwich also interviewed 149 FX traders in Q3 2020 as a part of its annual Market Structure and Trading Technology Study. Those respondents were asked a series of qualitative and quantitative questions examining their trading behavior, usage of execution platforms and the tools used to manage their workflows.