Dealers losing exclusive role in foreign exchange, BIS report notes

Large dealing banks are losing their grip on market-making in foreign exchange, according to a new study by the Bank for International Settlements (BIS).

Non-dealer financial institutions have become increasingly dominant and are pushing the market away from the traditional two-tier structure, where dealers and customers are clearly separated.

The growing importance of hedge funds, asset managers and smaller banks – the segment classified as non-dealer financial institutions – has caused a key