Combining listed and OTC FX products improves risk management

Published on 25 November 2022

As FX risks have increased in 2022, traders have found it harder to manage those risks while maintaining efficient trading. Supported by regulatory tailwinds, the use of listed FX products has increased and consequently complemented the use of OTC and spot products.

While they are at a nascent point in their development, there are potentially greater margin offsets and comfortable adoption by market makers – both tradition and non-traditional – creating a diverse flow of liquidity for long only and hedge fund buy side firms. Consequently, they have the potential to grow in line with OTC markets.