Agency desk growth will be slower than expected, traders say
Weak client demand will limit the move to brokerage-like trading
Senior traders have poured cold water on claims that agency desk execution could soon take up a significant chunk of overall FX trading flow, saying clients remain sceptical of the concept.
Several banks are considering moving some FX business away from the risk-taking, principal-based method of trading and towards a more brokerage-like agency service, as margins tighten and costs continue to rise.
Some market participants see the agency desk model potentially growing to 50% of the overall
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