Pricing data is key to unlocking FX swaps e-trading
Digitec’s Stephan von Massenbach on why automation is needed for e-trading to reach its potential
Foreign exchange swaps make up around 50% of the $6.6 trillion-a-day FX market. Yet according to the 2019 Bank of International Settlements Triennial Survey, only around half of the FX swaps used for hedging and risk transfer are traded electronically.
The lack of any public reference rate is widely seen as the main reason for the slow pace of electronification. Pricing in the FX swaps market is mostly bilateral and therefore non-transparent, and accurate pricing data is hard to come by.
Prici
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