An analysis by TabbForum on the relative liquidity of multi-dealer FX platforms vs. single-dealer platforms shows that both are needed. However, the rise of mid-size corporate trading has been a leg up for single-dealer platforms with multiple, tailored interfaces are gaining market share.
Specifically, increased demand by the mid-size corporates for modern FX services, combined with these customers’ propensity for simplicity and reliability, is providing a previously obscured liquidity channel.
TabbForum says the key functionality for a SDP designed for mid-sized corporates is, “…to provide only the relevant workflows for that particular client profile, combine this effectively with a bank’s own identity, and ensure the onboarding and user experience fulfills modern technology standards and expectations.”
TabbForum goes on to sketch out some specific user requirements: “An easy-to-access and user-friendly service delivered direct into the browser and increasingly on mobile devices increases user activity.”
Banks can use new “solution-focused” technologies to offer multiple user interfaces on SDPs according to each corporate’s specific demands, according to TabbForum. This gives corporates what they want and should boost banks’ FX profitability.