The FX Ecosystem
Interesting read over on HFT regards the FX ecosystem, specifically provides a good read on the banks around the world:
Super-regionals, regionals and local banks can focus on particular sets of needs and work on becoming the world leaders in that niche. In the process, they become valued customers of the tier one banks. There is a natural tension in this relationship, but they need each other, and both know it. The smaller banks need liquidity with tight spreads, and the larger banks need profitable flow. But relationships have to be considered in every routing decision. The better the mid-tier partners with their liquidity providers to make sure the flow is economically helpful to both sides, the more they’ll be able to consistently serve their own clients.