Banks mull whether to stick or twist with SDPs

Banks
operating
single-dealer
platforms
(SDPs)
are
grappling
with
mounting
challenges,
including
the
costs
of
maintaining
their
offerings
in
a
crowded
field.

More
client
types,
such
as
corporates,
feel
compelled
to
execute
a
wider
range
of
foreign
exchange
trades
on
platforms
where
they
can
put
multiple
dealers
in
competition
with
each
other.

This
has
sparked
discussions
within
the
industry
about
the
long-term
future
of
SDPs
and
whether
banks
can
justify
investing
in
them,
given
what
they
regard