Everyone can admire a good comeback, whether or not you like the result. Take the New England Patriots’ improbable victory from 28-3 in Superbowl LI or Ben Stokes’s Ashes-saving innings at Headingley in 2019.
Now, the two interbank trading venues for spot foreign exchange, EBS Market and Refinitiv Matching, are hoping for their own redemption story after years of dwindling volumes and questions over liquidity.
The platforms have embarked on an overhaul of their infrastructure and product range, in a bid to entice users back.
But reversing the flow of trades away from the primary venues will be a tall order. Dealers have long complained that the platforms are a high-information environment where users can see each other’s trade intentions on the central limit order book, or Clob. This leaves dealers exposed to the risk that prices will move against them as a large order is sliced up and executed over time – an effect known as…