Buy-side Perspectives Issue 3 - Page 15

Foreign exchange (FX) The results from K&KGC’s 2015 foreign exchange electronic trading survey indicated that buy-side liquidity is stretched across 21 different ECN, MTF and single dealer platforms, with FXall by far the most popular, followed by FX Connect as the most frequently selected options at time of writing. There is a significant drop-off between these two platforms and the other nineteen, suggesting there may be space for consolidation in the FX market. The buy-side has indicated that algorithms are still not heavily used in FX, with the majority not using them at all. The ongoing 2016 Organising the FX trading desk survey should help to provide more colour on exactly how the buy-side is reshaping its FX trading activity as the asset class increasingly comes to be valued in it’s own right rather than seen as an add-on – stay tuned for more information and don’t forget to check your inbox for the link to the survey. 15