The Foreign Exchange market has come a long way from its early days of voice/telephone trading. Before the late 1980s, the FX market was primarily broker-dealer oriented, with most transactions taking place in the inter-dealer core. In the outer tier, transactions occurred between dealers and their clients with bid-offer spreads that were wider than those in the inter-dealer market. Calls for prices and transactions were carried out over the telephone, hence the name ‘voice trading’ for this era and the form of interaction with dealers. In the early 1990s, electronic trading gained popularity, leading to the ... (full story)