Trends in Institutional FX Trading 2025

Alpha, Automation and Cross-asset Integration

Foreign exchange (FX) has undergone profound changes in the first quarter of the 21st century, evolving from a market defined by human traders exploiting arbitrage into one dominated by technology, regulation and cross-asset integration.

Published on: 9 Oct, 2025somdn_product_page

Description

The era of dedicated FX trading floors at Tier 1 banks has largely ended, replaced by centralised multi-asset desks and algorithmic execution. These shifts reflect both regulatory pressures to reduce risk and capital consumption, and the technological capabilities that allow trading, risk management and liquidity aggregation to be handled on a consolidated basis. This report explores these recent trends.

Table of Contents

  • 1.0 The Changing Role of FX in Modern Capital Markets
    • 1.1 FX Markets Show Solid Growth in Volatile Times
    • 1.2 Operational & Technology Shifts
  • 2.0 The Emergence of Central Trading Desks and the Role of FX
    • 2.1 From Arbitrage to Alpha Generator
    • 2.2 Creating FX Alpha Across Asset Classes
  • 3.0 Digital Currencies: Pay Your Money and Make Your Choice
    • 3.1 Divergent Regulatory Regimes Create Practical Difficulties
    • 3.2 Post-trade Clearing and Settlement – a New World Order?
  • 4.0 Appendices
    • 4.1 Table of Figures

Figures and Data


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