FX volumes are down, but its more than just economics

By | April 30, 2014

First some admin notes.  We’ve recently created an official Greenwich Associates market structure blog.  The goal was to create a 20130826-211745.jpgseamless method for us to get new research and commentary out to the market.  The market structure commentary I’ve been posting here at Kevin on the Street will mostly all end up on the new site.  My favorite part is that since the new blog is officially Greenwich, I have a lot more freedom to post Greenwich proprietary data.  And over time you’ll hear more voices from our market structure team as well.

The site is intentionally simple, and focused on the content.  For now everything is wide open, but I encourage you to register as we will in time require that to access the posts.  OK, now with that all behind us…

FX Volumes in Q1 2014 were down almost 30%.  A whole lot has gone on the world that explains the slump – volatility is down, hedge fund FX trading is off, and the impact of Abenomics has subsided.  But we think it is more than just a story of economics.  Several market shifts point to a fundamental change in FX market structure.  Regulations play a part for sure (we’ve talked about this in the past), but its not that simple.  Continue on to the Greenwich Blog for the full story…

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