Greenwich Associates

Between the 40 and 45 percent of the currency participants they are advisers of basic product commerce (CTA) and of hedge funds. " These groups are much more comfortable that before in negotiating electronically. They worry to the risk about execution sliding, but the electronic commerce he is more and more popular, " , it says. The considerable growth of the platforms in line, and the survival of a number of different models has surpassed the expectations of the observers. The initial leads were that the Multibank vestibules like FXAII, that offer prices of an ample range of banks, they would surpass the propietary platforms pertaining to a single bank.

However, both are growing quickly. One recent survey of Greenwich Associates, a group of EE.UU. consultancy, I in line position to FXAII and the propietary platforms of UBS like the leaders in volume of the transactions. Also there were initial fears of which the sudden increase in points of sale of commerce could fragment the liquidity, making difficult therefore the commerce, but this still does not seem to have happened. " However, but channels it stops the same market, a price in a platform or another one is practically the same " , it says Fabian Shey, director of UBS currency distribution. Mr. Trenner suggested generally, the reduction of currency negotiation in a few world-wide centers. Tokyo, London and Nueva York-and the reorganization of the banks have consolidated the liquidity.

When EBS was sent for the first time, the retailers expressed their preoccupation by the disappearance of the intermediaries of voice and the roll who had the indebted ones, noticing that the elimination of the obligation to quote two routes of prices could debilitate the liquidity in the days of crisis with the happy runners to take the prices and less preparations to quote them. Nevertheless during 11 years, the market has not undergone an important problem and is very few tests of the prices staggering through " gappin" , when the new supply is not superposed with the last published price. The relative tranquillity of the movements of the prices is the test, says Jeffery Jack, executive director of EBS of which the market has evolved with the development of the commercial technologies. " The market is so liquid with so diverse movement and points of view of which marketmaking is cambiado" , it said. " Now it is about the participation. If he decides to participate, you are contributing to the liquidity, not only sacndolo". Some still notice, nevertheless, that the present dependency of the market of leaves it to the technology at the mercy of the computer science servants. The blackouts are extremely rare, nevertheless, the participants are optimistic on the risks that suppose. " Yes, there is a risk, but the market adapts bien&quot very; , it says Nick Beecroft, head of Standard currency operations Chartered. " In the case of a serious crisis, there is a pile of lines of the houses of brokerage in order to try and it would only be a question to again move all the ex–agents on the telephones. FX is a market highly resistente". It seems that the fears on the loss of the human factor are still unfounded! Original author and source of the article.