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
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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