The global arena for foreign exchange appears on the surface to be a giant pool of cash in constant churn, generating $7.5t of transactions per day — more than all other major asset classes combined. But lately key names from the industry have begun to fret about just how deep the pool really is.
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Traders fear global FX market may be less liquid than it appears
“Liquidity on the face of it might look quite robust,” says Mark Meredith, head of FX e-trading and algo execution at Citigroup. “But actually in extreme events it’s more and more fragile.”
