GLOBAL - One quarter of the world's corporate and financial institutions are trading foreign exchange products online, up from 17% at the end of 2001, according to research from Greenwich Associates.
Total online trading volume among is expected to rise to 40% by the end of the year.
“For the biggest institutions, electronic trading is a way of capturing efficiencies. For the smallest institutions, it’s great for accessing dealers they normally would not be able to work with,” said Greenwich consultant Tim Sangston.
Greenwich interviewed professionals at over 2,700 corporate and financial institutions that each trade US$250m+ annually in forex products. Interviews were conducted throughout Asia, Europe, and the Americas.
Online forex trading is most prevalent in the US where 40% of institutions are trading some of their forex volume electronically. Strong growth has also been reported in continental Europe (29%) and Australia/New Zealand (30%.)
But the number of forex users using straight-through processing (STP) remains below 15%.
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