Further liquidity fragmentation in FX predicted

Justyn Trenner: wrong regulation could hit liquidity

Major growth in the foreign exchange market over the past decade, and the increasing activity of high-frequency traders, are posing new challenges that will lead to further fragmentation of liquidity in the years to come, according to research published today by London-based research firm ClientKnowledge.

"There is an enormous depth and range of methods of trading, from the person in a corporation who phones their bank to the algorithm at a hedge fund, which makes the decision on which price to