FX Guys

Keys to the kingdom: dealers open doors to passive trades

Some of the biggest foreign exchange dealers are giving certain systematic hedge funds the keys to their most prized possessions – access to their client franchises.

Banks have been able to internalise flow from clients for years, matching off algorithmic orders as they come in with interest from other clients around the franchise. But if dealers wanted to leave passive, resting orders to earn the bid/offer spread instead of crossing it, they would have to go to an external exchange.

Now, top-tier

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