Growth of NBLPs thwarted by credit structure, platform heads say
Alternative LPs look to do more relationship-based trading rather than streaming prices anonymously
The biggest obstacle facing non-bank market-makers today is their inability to control their credit exposures to clients due to their need to access counterparties via prime brokers rather than being able to build direct relationships, panelists told delegates in New York at this year's FX Week USA conference.
Over the past 15 months, a number of larger alternative liquidity providers (LPs) have launched efforts to establish disclosed trading relationships with their counterparties rather than
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