Another day of large moves. Liquidity Providers complaining about seeing flow from multiple channels simultaneously. Participants complaining about gaps in pricing, and shortages of liquidity.
The FX market has a current problem of liquidity mirage, but the very same market participants who complain about it are the very same people who are responsible for creating it. A bank doesn’t have to quote all customers on all platforms. To me this is the most basic and logical thing.
It’s a rare situation that the very same institutions that are the biggest victims, can immediately stop their pain, by choosing to limit the number of Multi Dealer Platforms (MDPs), a liquidity maker posts prices on. But will they?