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.
“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.”
