Internalisation rates intact despite rising volatility

Electronic risk management systems have coped with volatility uptick

Chris Purves at UBS
Chris Purves, UBS

Internalisation rates at banks remain unchanged despite an uptick in volatility, as electronic risk management systems can still handle the level of price movements currently seen in markets, but extreme price swings could force some dealers to cut back on matching flows internally.

In recent years dealers have been targeting increasingly higher internalisation ratios – in some cases up to 90% of orders in the most liquid currencies – as they sought to cut costs, reduce market impact and cope

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.fxweek.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a FX Week account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: