Internalisation trend driving FX market opacity to new highs
FX Markets Europe: Dealers say they internally matched up to 1,500% more volume than public markets during April
The increasing shift of foreign exchange spot market volumes into liquidity providers’ internalisation engines has made real-time visibility into the true magnitude of volumes traded in the market more and more difficult.
During intense periods of high volatility, such as April’s tariff turmoil, liquidity providers noted that the flows they internally match within their client franchises significantly exceeded those conducted on the public markets.
This trend has grown as banks have continued to
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