A new breed of non-bank market-makers has been making inroads in the vast foreign exchange sector, but they are far from threatening the dominance of the world's top dealers, according to Greenwich Associates.
According to Greenwich Associates the top dealers still capture 44% of global market share in aggregate, but this figure has fallen from 48% a year ago and 53% in 2013.
Fund managers have to pay for brokers’ research and trading execution separately under MiFID II. That will spur more than $300 million in research budget cuts in the U.S. and Europe, according Greenwich Associates.
FX algo use is steadily rising, according to a report by Greenwich Associates, with the most dramatic rises seen among corporate traders scrambling to demonstrate best execution, as stipulated by the FX global code of conduct.
The top five FX dealers are losing market share, according to a new report from Greenwich Associates.
The traders participating in a Greenwich Associates study said they are demanding a new level of control and transparency over their order flow, even when routing via their high-touch sales trader.
Top five dealers’ global market share in FX slips to 44% at end-2016 as sell-side desks narrow coverage, multi-dealer platforms boost access to liquidity and competition increases from regional dealers and non-banks, Greenwich Associates says in a...
“More than half of traders in continental Europe are either undecided on what changes they need to make or are awaiting further clarity” said Richard Johnson. “This suggests there will be a significant rush to comply and make changes in the second...
"The tick pilot isn't working," said Richard Johnson. "There are some who just think they should cancel it now. There's even a question as to whether there is a problem with small companies. They're absolutely harder to trade than large caps, but...
At the same time, more client business is flowing to fewer dealers: The five largest handled 58 percent of the volume in 2016, up from 43 percent in 2006, Greenwich Associates data show.
