While algorithmic trading in foreign exchange is growing, it remains limited compared with other markets such as equities, according to Kevin McPartland, head of research for market structure and technology at Greenwich Associates.
“Technology is only as good as the people behind it, and buy-side trading desks are putting their money where their mouth is,” said Kevin Kozlowski, a Greenwich analyst and author of the study.
“The landscape has come to be dominated by a small few global and diverse exchange operators. The proposed entity would become a part of that picture, alongside market leaders CME and Intercontinental Exchange,” says Kevin McPartland. ...
About 60% of the $281 billion of trades investors send to dealers each day go through the top five banks, up from 44% a decade ago, according to a report from financial-services consulting firm Greenwich Associates.
"Parts of the fixed-income market are moving towards a more agency model, which more closely resembles the way equity markets work," said Kevin McPartland. "And it's hard to ignore the growth in fixed-income e-trading."
Institutional trading desks are approaching alternative trading systems with more caution and, at times, even skepticism, according to the Greenwich Associates 2015 Trade Desk Optimization Study
According to research from Greenwich Associates, year-on-year market shares of the five biggest banks in Foreign Exchange shrank.
“Traders are less likely to accept at face value the quality of execution they receive from dark pools,” wrote John Colon, Managing Director at Greenwich Associates.
“The rules governing the treasury market are over a decade out of date,” says Kevin McPartland, at Greenwich Associates. “It’s time to take a look and see how the market has evolved and how rules need to adapt.”
Citi, a late entrant to FICC, is now ranked number one globally in the latest annual study from Greenwich Associates, the industry’s benchmark.
