Streaming with the enemy: banks turn to non-bank liquidity

Larger banks are becoming more receptive to consuming FX prices from prop traders like Citadel Securities and Virtu

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In the popular imagination, public trading venues are the domain of predatory high-frequency traders, feasting on the flows of banks and their clients.

The truth is more complex. Firms that are often seen as an enemy of the banks are now – at times – their strategic partners. The idea is that banks can use liquidity from prop traders as a supplement to their own through bilateral streaming arrangements. This gives banks a chance to hedge themselves or source liquidity for their clients without

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