Spot FX is a ‘bankrupt business’ if economics don’t change
The complexity and choice available to participants has increased at the same time as liquidity provision dynamics have shifted, upending previous business models, panellists say
The foreign exchange business is at risk of becoming unviable in highly commoditised products such as spot, if market participants don't improve their methods of analysing the costs of trading and managing operations, panellists said at the 12th annual FX Week Asia conference in Singapore.
"The economics of the FX market are pretty much broken. The spreads available and fees available to make versus the costs are not in line. It's a bankrupt business," said Luke Waddington, an independent FX
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