Bilateral streams slash FX trading costs by 80%

FX dealers report 70% of spot traded in bilateral feeds, at least four times cheaper than RFQs and venues.

Photo: fxmarkets

The market for spot foreign exchange has largely shifted from traditional trading venues to bilateral streams, where transaction costs can be as much as 80% lower for large trades, dealers claim.  Srichakri Adhikarapatti, global head of electronic FX, rates and credit quant trading at UBS, says “upwards of 70%” of the bank’s spot FX business is now traded bilaterally via electronic interfaces known as APIs.

Reprinted from fxmarkets, the copyright all reserved by the original author.