Bloomberg have a piece up (ungated) on liquidity developments in the forex market
I had a bit of fun with the headline to this post, scanning the article for all the adjectives used, but I missed quite a few
The article lays the blame on ..
- As regulation pushes banks to reduce their market-making activities, liquidity -- the ability to trade without having prices move against you -- is becoming more patchy.
And has a contrary take:
- "Things were over-liquefied" as recently as two years ago because banks were competing for business, said Peter Gorra, head of foreign-exchange trading in New York at BNP Paribas SA. "We're finally seeing the more natural liquidity in the market for what it is, as opposed to banks always going ahead of themselves trying to win as much market share. People are used to it now."
Agree or disagree, its a good read for a scary Friday the 13th!
Mind the Gap as Currency Markets Shrivel for All But Biggest Few
