A new report from market intelligence firm Acuiti reveals that the traditionally separate realms of over-the-counter (OTC) and exchange-listed derivatives are rapidly converging, fueled by massive tech upgrades and aggressive moves by exchanges to expand their offerings.
It’s a shift that’s creating new hybrid trading platforms and giving big investors smoother access to both markets. But there’s a catch: Despite these advances, the FX market is still a tangled web, making it notoriously difficult for firms to get a clear, real-time picture of where liquidity actually is.
Where Traders Get Their Intel
The study identified clear preferences among different types of institutions:
- The Buy-Side (like asset managers and hedge funds) are all-in on exchange platforms, craving the transparency they offer.
- The Sell-Side (including major banks and brokers) still heavily rely on multi-dealer platforms and their own proprietary networks.
Institutional traders are increasingly demanding the clear, centralized data that feels more like what they get in the stock market, while many banks are sticking to their traditional, more opaque portals.
These challenges were most pronounced in emerging markets, where non-deliverable forwards (NDFs) trade. Here, 67% of respondents pointed to fractured liquidity and scarce data sources as major impediments to accurate pricing. Tier-1 banks emphasized the lack of real-time data, while brokers and prop trading firms cited high data costs as a critical concern.
Indian Rupee and Brazilian Real Lead 2025 Outlook
Acuiti also surveyed traders on emerging market currencies with the highest potential returns. The Indian rupee (INR) emerged as a standout, bolstered by the country’s growing economy and potential gains from U.S.–China trade tensions. The Brazilian real (BRL) also ranked highly, with many anticipating a recovery following its downturn in 2024.
“Looking ahead, the Indian rupee, Brazilian real and Chinese renminbi were seen as offering the greatest profit potential in emerging market derivatives trading,” the report reads.
The report is based on a quarterly study drawn from its network of senior industry executives, which the firm notes has a strong focus on listed derivatives markets.
