Handbook of Exchange Rates

21.5 Looking Forward

Ongoing investment in front office technology and the endless stream of market initiatives launched in an attempt to catch a slice of the FX pie will ensure that algorithmic execution remains in focus for the future. The ability to provide quality algorithms will be promoted by banks eager to maintain relevance with their clients. Competition can also be expected from a number of agency style service providers, introducing products in much the same way that equity market makers and proprietary trading firms have for listed instruments. Dark pools of liquidity have been introduced to the market in various guises over recent years with minimal take-up; the potential is there for them to gain momentum in the future. There is no stopping market evolution, in the current environment, any offering that provides a combination of savings, transparency, and automation is bound to continue to attract attention.