Foreign exchange trading is seeing market share concentration shift evermore in favor of the top 5 dealers, as FX trading volumes remain sluggish due in part to lack of volatility in the global markets.
Greenwich Associates expects this trend to continue for at least the next 6–12 months. In a market segment where three-quarters of volumes are traded electronically, FX dealers feel squeezed as massive and ongoing investments in technology are a must despite razor thin margins on trades. But opportunities are out there for dealers outside the top 5—especially in areas like emerging markets currencies and FX options.
Methodology
This report provides detailed information on Foreign Exchange investing according to investors located across the globe. Greenwich Associates conducted in-person and telephone interviews with 1,584 respondents from September through November 2013.