Speediest traders becoming less welcome in currency markets

London

THE most aggressive high-frequency currency traders are showing signs of losing steam, suggesting platforms have succeeded at thwarting some speedy strategies.

Electronic specialists are making waves by eclipsing major banks in foreign-exchange trading. But some strategies - focused on fast execution and short-term arbitrage - have reached a "saturation point", according to the Bank for International Settlements (BIS). At the same time, platforms have adopted so-called speed bumps to blunt advantages of the savviest firms, which have been blamed for sniffing out trader intentions to bet against them.