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EM FX liquidity and execution challenges in smaller pairs
Anyone else seeing significant deterioration in liquidity for some of the less common EM crosses lately? I'm talking about the real long tail, not just your typical $ZAR or $MXN. Spreads have widened considerably, and even modest size can move the market against you on certain platforms. Curious if this is a systemic shift or just my current broker's desk.
Also, how are people handling payout reliability and speed with some of the local banks in these regions? KYC/AML remains a persistent headache, even with established relationships. Any strategies for streamlining this or mitigating transfer risk without just eating the higher fees of a global bank?
1 comments · 49 points
That's an interesting point about the real long tail EM crosses. I'm relatively new to FX, mostly sticking to majors, but I'm curious if this is due to broader market conditions or something more specific to how certain brokers pool liquidity. What kind of pairs are you seeing this most in?