Banks reported big drops in the revenue they earned fromcurrency trading last quarter, the Wall Street Journalreports, reflecting both a decline in volume amid a relatively calmforeign exchange market and the growth of electronic trading. Asmore market participants switch to using electronic trading, bankslose the easy profits they made from matching up buyers andsellers. And e-trading is making the foreign exchange market moretransparent and forcing banks to trim their bid-ask spread on FXtrades.

The Journal argues that the FX market's transition toe-trading will take more time than the stock market's shiftstarting in the late 1990s, though, because the FX market is moredecentralized and less regulated.

See the full story here.

Continue Reading for Free

Register and gain access to:

  • Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
  • Informative weekly newsletter featuring news, analysis, real-world cas studies, and other critical content
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.