Electronic Foreign Exchange Market, 2018: Midsize-To-Large Buy-Side Firms’ Needs - According To New Aite Group Estimates, Buy-Side OTC FX Trading Activity Has Seen A 359% Increase From 2004 To 2017

Aite Group’s latest report, Electronic Foreign Exchange Market, 2018: Midsize-to-Large Buy-Side Firms’ Needs, examines global buy-side firms that are facing a classic profitability squeeze, with management fee compression due to the popularity of passive investment vehicles and higher technology costs that stem from more regulation of over-the-counter and derivatives markets. The pressure is on at all levels of buy-side firms to do their share and run efficient, lean operations across multiple asset classes and jurisdictions, and in listed and OTC marketplaces.

“Buy-side adoption of electronic FX trading appears to have hit the mainstream, with the sell-side finally reaching the final frontier of e-trading adoption through various execution and analytics tools,” explains Peter Wadkins, analyst at Aite Group.

This new Aite Group report addresses how leading global foreign exchange marketplaces/multidealer platforms and banks provide the buy-side with a suite of trade-related services. The research originates from Aite Group’s 2017 global FX survey and more than 50 interviews with FX executives.