Further liquidity fragmentation in foreign exchange predicted
Market-damaging behaviour should be controlled, but separation or elimination of high-frequency trading would be damaging to the market’s equilibrium, ClientKnowledge argues in research published today
Major growth in the foreign exchange market over the past decade, and the increasing activity of high-frequency traders, are posing new challenges that will lead to further fragmentation of liquidity in the years to come, according to research published today.
"There is an enormous depth and range of methods of trading, from the person in a corporation who phones their bank to the algorithm at a hedge fund, which makes the decision on which price to execute. The same differences apply to the
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