Stable relationships still vital in FX, say asset managers

Accessing liquidity when needed is more important than price, according to buy side

liquidity - water - Getty
Liquid assets: for many, the most important thing is to get a trade done when it needs to be done

Having a stable relationship with foreign exchange counterparties is critical for a well-functioning trading business, asset managers say. For them, accessing liquidity at the time they need it trumps price any day.

“For me,” says Patrick Hoffmann, a former portfolio manager at Stone Milliner Asset Management, “the most important thing is to get a trade done when I want to get it done. Paying half a pip more may sound like a lot, but for us it’s not a big deal if we get a price that is stable.

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