THETRADETECHFX DAILY
where quotes are genuine, prices are firm, and the entire depth of the market is visible to all participants,” he says. In such stressed conditions, voice trading also came under scrutiny. Bartle warns that while it remains useful for transferring risk, it may be less efficient or transparent in moments of extreme volatility.
Alternative liquidity providers – filling the gaps As banks stepped back, alternative providers and technology-driven venues seized the opportunity to demonstrate their resilience. Central limit order books, principal trading firms, and non-bank market makers saw elevated volumes as buy-side firms searched for executable, reliable pricing. In turn, Bartle warns that voice trading lacks the speed and transparency of electronic trading.“ While risk transfer can be a very useful strategy, when the traditional market is struggling for liquidity in a single unit of risk during such periods of extreme
“ There are always opportunities to be found even in volatile markets.”
Toby Baker, head of foreign exchange trading, T. Rowe Price volatility, it may not be optimal further out the risk unit curve,” he says.“ Alternative liquidity providers bridge this gap by offering data and analytics platforms that provide real-time market colour and a verifiable audit trail, combining the best of human insight with the speed and reliability of technology.” Noor Mohammed, director of business development at Tradepoint Systems, agrees that speed and technology are critical differentiators.“ You can lose a huge amount of money in the blink of an eye in e-FX,” he says. He notes that liquidity mirages are particularly pronounced in volatile markets when platforms pull prices quickly.“ Most dealers stood their ground, but with last look liquidity on some ECNs the picture is
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