The Global FX Trading Quorum met on 7 October 2025 at a hybrid in-person/remote event.  

Discussion themes: Trading costs and collateralisation | Deep learning and market structure | Asian FX growth and regulation

Meeting Summary

The discussion explored how collateralisation and balance sheet costs continue to distort true trading economics.
AI in market making is accelerating, but compute costs risk creating structural concentration. The BIS survey confirmed strong FX growth led by Asia, especially Singapore.  There are growing calls for industry coordination and regulatory clarity to ensure transparency and competition.

The true cost of FX trading – collateral, credit and the case for transparency
Q15 FX Quorum members revisited the challenge of accurate pricing of collateralised and un-collateralised trades. Despite broad agreement that pricing should reflect balance sheet usage, inconsistent workflows and fragmented client data continue to obscure the true cost of credit.

Several voices argued that only regulatory compulsion - mandating the explicit disclosure of credit costs- will deliver transparency and level pricing. While technology could enable pre- or post-trade differentiation, participants cautioned that voluntary industry coordination is unlikely to succeed without regulatory alignment.

AI for FX - deep learning, compute power and market concentration
The rapid rise of deep learning in FX market making is a theme echoed across recent industry conferences. Deep learning models can absorb vast quantities of structured and unstructured data to improve pricing accuracy, particularly in less liquid markets. However, the computational intensity required - backed by billion-euro investments in dedicated data centers - means that only a few global firms can compete effectively.

This reality may lead to a bifurcation of the market: A small group of non-bank firms dominating primary market making, while banks focus increasingly on client execution. Participants emphasised the need for regulatory understanding and oversight to ensure explainability and accountability in AI-driven trading environments.

BIS Triennial Survey – Asia’s expanding role
The group reviewed findings from the latest BIS Triennial Survey, which revealed robust FX market growth globally and particularly in Asia and Singapore. This reinforces Asia’s growing influence in liquidity provision and infrastructure investment, but also raises concerns about fragmented oversight and regional divergence in transparency standards.

Looking ahead – collaboration, conferences and tokenisation
Participants noted renewed interest in low-frequency trading models for investment management and shared reflections from recent industry events on topics such as AI, TCA, crypto and e-swaps. There was collective enthusiasm for continued open dialogue per the Quorum 15 model (buy and sell sides in the same room), with suggestions for earlier agenda planning and more focused topic curation to encourage greater participation in 2026.