Adam Gazzoli and Nick Ohlin from R5 (and both Australians), spoke with Paul Golden at Euromoney about the ongoing development of the Australian FX market.

A few call outs – 

Adam commented that non-banks in general have grown their market share across all currency pairs, and that the the larger non-banks are showing a growing interest in EMFX, as they seek to capture the benefits of market electronification. 

He added, “Over the last year, we have seen an increasing number of non-banks look to bring their experience from trading G10 to emerging markets”

Nick commented that the AUD/RMB market will grow during the next three years. The AUD is still largely seen as a proxy for renminbi, due to the economy in Australia relying heavily on China. 

Even though leverage is a key focus for ASIC, Nick observed that ratios are unlikely to change. “Leverage is already fairly conservative and we don’t expect there to be a great deal of change to margin requirements as it is generally agreed that the risk is being effectively managed.”

The full article is available at https://www.euromoney.com/article/b18y5zvqbj44hz/fx-non-banks-make-headway-among-smaller-aussie-participants