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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 .

"Prop FX is now more than just a couple of traders sitting at screens and taking risk," said one global FX head at a bank in London. "Markets are more transparent so you’ve got to be smarter now to make money."

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

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