Price aggregators in the foreign exchange market that take active steps to weed out liquidity providers (LPs) engaging in toxic behaviour may see more business coming their way, according to a senior banker.
“Those vendors that do [adopt] a sort of self-regulatory structure around the way they provision liquidity, I think might find themselves doing more business,” said Chris Chattaway, co-head of global G10 spot and Americas emerging markets FX delta one trading at Goldman Sachs.
Chattaway was speaking on a panel at the FX Markets USA conference in New York on October 20.
FX venues and liquidity aggregators are under pressure to clamp down on so-called toxic flow from counterparties with a trading style that moves the market against LPs, making it harder…
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