Trading liquidity tops FX market's concerns in 2020 - survey

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The ability to buy and sell foreign exchange whenever needed with minimal market...

LONDON - The ability to buy and sell foreign exchange whenever needed with minimal market impact is seen by currency traders as the biggest challenge for 2020, according to an annual client survey by JP Morgan published on Thursday.

The views of the biggest 650 institutional trader clients, mostly focused on the $6.6 trillion a day foreign exchange markets, polled by JP Morgan point to a tricky year ahead for investors. “Margin compression, increased competition, high execution costs, and tech advances has caused forced a few market makers to exit the space and for liquidity to appear more plentiful than it is in reality,” said Scott Wacker, global head of fixed-income, currencies and commodities e-sales at the bank.

 

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