EBS volumes down by 50% compared with last year

Interesting dynamic in the professional market as the big 5 or 6 banks get so big that they must now be nearing critical mass, meaning that they don’t need to go and clear in the market as much as they had to in the past. Those now relying on the big electronic brokers to see what’s going through the market are missing out on half the story. Of course EBS has also been hit by cut-throat competition in the electronic broking market as well as some changes they made to their pricing precision.

  1. Hi Sean,
    Do you have an idea of the % of the volume made by retail traders / BIS / and the hedge funds vs all the rest?
    So you’re saying that volume is not down, but only the volume at EBS is down. As a trader, do you feel that there is a difference between now and 5 years ago? Many traders seem to say that volume and volatility are down. Personally, I feel that a lot of european traders are simply taking much less risks and therefore european trading has declined.

  2. I heard recently that retail turnover now accounted for over 20% of mkt and is growing fast so that area is definitely not declining. Overall turnover is also up but its not coming from banks. And you’re right about Europe I think as German, French, UK banks are all trading much less since 2008. So hedge funds and Sovereigns have become much more active.

  3. At the moment yes. I find it helps my own trading a lot to do research every morning and then follow the mkt thru the day, writing down my thoughts. Will see how it develops but I quite enjoy the repartee with other traders. I won’t be doing any news reporting like ForexLive etc as that’s too hard; I’ll only get stuck in when the mkt is moving 🙂

  4. Sean, thank you for sharing the fruits of your hard work with us. I think this new format is of tremendous value in helping us understand the inner workings of the market and price action.

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