Key facts
- Over two-thirds of interdealer foreign exchange swaps trading volume still relies on voice brokers.
- Banks are exploring electronic swap trading venues due to growing pressure on brokerage costs.
- New technologies enabling automated credit line management are also influencing this trend.
A decade after efforts began to transition dealer-to-dealer foreign exchange swaps trading from telephone to electronic platforms, voice brokers continue to handle more than two-thirds of the volume. However, as brokerage costs escalate and new technologies emerge for automated credit line management, financial institutions are showing increased interest in electronic swap trading venues. This shift reflects a growing desire among banks to find more efficient and cost-effective ways to manage their FX swap hedging strategies.