Forex liquidity crisis looms

The rapid development of electronic trading combined with the growing ranks of non market-making banks has concentrated liquidity in fewer hands in recent years. Also, the "liquidity mirage" of e-platforms, which means there may not be as much liquidity in the market as they suggest, could herald a major systemic risk for the biggest players who increasingly dominate the market, they said.

"There's been a significant evolution in the way FX has been traded," said Drew Bradford, head of FX tr