Transparency drives FX prop trading changes
Foreign exchange proprietary traders are altering their strategies in response to increased price transparency. They are taking risk across more products, referring more to market strategy and turning to FX derivatives for speculative trading, according to banking officials surveyed by RiskNews’ sister publication, FX Week .
Another head of trading at a large European bank in London said: "The traditional skills of going long/short just don’t apply any more. The market has slowed down, so prop traders have to look elsewhere for revenues."
The primary change is that prop FX traders are now entering more
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