ECB highlights dangers of over-concentrated market

In recent years, high-profile mergers such as the JP Morgan and Chase Manhattan tie-up and the Deutsche Bank/Bankers Trust marriage, have reduced the number of firms engaged in FX trading, while increasing the market share of the top tier, the ECB said in a review of the FX market published earlier this month.

At present, the study said, liquidity is holding up well in the markets, with euro liquidity, for example, coming close to that of the now-defunct Deutschmark. But ongoing concentration