Worries mount over year-end liquidity conditions

By some measures, liquidity already halved this year, banks say

Jeremy Smart, RBS

Foreign exchange markets could see increasingly difficult liquidity conditions going into the year end, which might make squaring up expensive for buy-side market participants and, if risk factors materialise, make it impossible to exit positions, warn sell-side market-makers.

Liquidity conditions have been deteriorating this year across fixed-income markets, with one head of trading estimating FX liquidity halved since last year, and spreads in interbank markets have been widening for the past

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