London Foreign Exchange Traders Sing Spot Market Liquidity Blues

BANKS

It may be the holiday season, concerns about recession, the influence of capital adequacy regulations, or just the continuation of a trend toward less liquid markets, but some traders are singing the blues about the spot market in London this week.

"Liquidity in the spot market is pretty terrible at the moment," says James Tyrie, assistant manager of foreign exchange for Mitsui Trust in London. "Banks are not willing to quote in good size and spreads are definitely wider."

A source at Lloyds B