The squeeze on spot FX

Market-makers feel squeeze on profits as spreads continue to tighten

Luke Waddington at BNP Paribas
Luke Waddington, BNP Paribas

The global investigation into alleged foreign exchange market manipulation might have occupied the attention of the market over the past six months, but with volatility hitting some of its lowest points in major currency pairs this year, FX liquidity providers have been facing an arguably more significant problem.

Historically low market volatility has squeezed bid/offer spreads significantly, with some pairs' spreads so tight that on occasions prices have inverted, according to the head of FX

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact customer services - www.fx-markets.com/static/contact-us, or view our subscription options here: https://subscriptions.fx-markets.com/subscribe

You are currently unable to copy this content. Please contact info@fx-markets.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to FX Markets? View our subscription options

You need to sign in to use this feature. If you don’t have a FX Markets account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: