The low volatility conditions observed in FX markets over the past year have posed challenges, with market makers facing spread compression and reduced turnover. Despite these obstacles, JPMorgan has maintained a high level of performance. The firm has consistently ranked highly across multi-dealer channels. Additionally, JPMorgan continued to expand its dominance in the FX options market, further solidifying its reputation as a top player in the space.
This past year has as seen JPMorgan making transformative changes to how it handles market-making operations. The development of a centralized leakage management team, covering spot, non-deliverable forwards, bullion and soon swaps, has enabled increased efficiencies for sales and trading to manage client pricing during all trading conditions.
This initiative has also promoted transparency and provided crucial feedback across these products, improving trading approaches and sustaining healthy liquidity in the market. The integration of third-party transaction cost analytics into the bank’s framework has further bolstered transparency, offering clients the ability to make more informed decisions based on independent analytics.
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