Banks are retreating from market-making, managers warn

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Investing in currencies has become significantly more challenging as banks have reduced their market-making activities in preparation for new requirements for bank capital, as well as the proposed ban on proprietary trading under the Volcker rule, according to buy-side speakers at the FX Invest Europe conference in Zurich earlier this week.

"Banks that were accustomed to being market-makers in the forex business were also accustomed to being lenders of last resort - or warehousers of risk - and

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