Banks struggle to keep trade flows in-house during volatility

Directional markets in March tested dealers’ ability to internalise risk


Dealers cut the amount of foreign exchange trading they matched off internally during March, as one-way markets prevailed during the volatility spike, firms report. As a result, some dealers were forced on to external platforms to find hedges, pushing up the cost of the original trades for clients.

“If most clients are on the same side you need to go to the external markets. It has been prevalent across the market,” says Mauricio Sada-Paz, global head of electronic fixed income, currencies and

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 -, or view our subscription options here:

You are currently unable to copy this content. Please contact 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

If you already have an account, please sign in here.

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: