Managing forex spreads has been the toughest trading challenge for asset manager traders since the onset of the pandemic and resulting lockdowns, according to a global survey of FX trading clients.
Over half of the 1,000 respondents, including 132 traders at asset management companies, said spreads was their main hurdle investing in May and June this year.
The issue of spreads was amplified for asset manager traders, the report by financial data firm Refinitiv found.
Only 35% of corporates said that forex spreads posed difficulties for them, while 15% of respondents claimed they had no trouble at all.
Jim Kwiatkowski, global head of transaction sales at Refinitiv, said: “Spreads widened as volatility increased and providers became concerned about client credit.
“This was clearly a market-wide impact, but one that was mitigated, at least partially, by the utilization of trading tools to aggregate available relationship pricing and find that elusive ‘best price’.”
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