Execution methods in foreign exchange markets

Over the past decade or so, the spread of electronic trading has brought about significant changes in the structure of the interbank foreign exchange markets and the relationship between foreign exchange dealers and their clients. This article looks at the way foreign exchange transactions are executed based on the BIS triennial survey data, and provides some quantitative estimates of the importance of electronic trading across transaction types, counterparties and economies.

JEL classification: F31, G15.