I’m still trying to understand what implications could this have for the Currency Market…
Big banks plan new currency trading venue
What do you people think?
It seems being a market maker is not as good as some years ago.
There was a time when it was illegal for US Citizens to own gold. They could try this with currency. Land of the free my (*)
That’s very unlikely, I think the banks main problem is “we don’t like to lose money, let’s trade between us, as it used to be”, they’re not the only market makers… I think, there’s CME for example.
The CME is not a market maker. There are market makers operating on the CME (no doubt ones linked to the major interbank dealers), but the CME is just an exchange - and is still only a fractional share of the daily forex market volume. The funny part about this for me is that the interbank market is basically already just about banks trading with each other - as the name implies.
Sorry, I didn’t meant to say CME is a market maker, I’m just pointing out there are other ways to trade currencies.