Fee standoff intensifies as FX spreads compress

As spread squeeze continues, brokers refuse to budge on trading fees


A tense showdown between big FX dealers and multi-dealer platforms (MDPs) on execution fees has intensified as increased spread compression across spot and derivatives products weigh on bank revenues.

The fee fight between dealers and venues is not new, but as volatility has fallen through 2021 and G10 markets trade more in a range, dealers say bid-offer spreads they can earn on swaps in particular have crept ever closer to zero.

Despite this, dealers complain that the trading platforms have

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