Corpus ID: 34247295

Downsized FX markets : causes and implications 1

  title={Downsized FX markets : causes and implications 1},
  author={Michael Moore},
For the first time in 15 years, FX trading volumes contracted between two consecutive BIS Triennial Surveys. The decline in trading by leveraged institutions and “fast money” traders, and a reduction in risk appetite, have contributed to a significant drop in spot market activity. More active trading of FX derivatives, largely for hedging purposes, has provided a partial offset. Many FX dealer banks have become less willing to warehouse risk and have been re-evaluating their prime brokerage… Expand

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