Swissquote's Bürki: Liquidity Still Key Industry Challenge

The Finance Magnates London Summit is almost here and many of the event’s most distinguished participants and speakers have been providing readers with their unique insights on the broader financial market. In this interview Marc Bürki, the CEO of Swissquote, lends his perspective on the current state of the financial services industry and more.

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1. What is your position and what does your role entail?

I am the CEO of the Bank and the Group. Swissquote Bank parent company is listed on the Swiss Stock Exchange (SIX). So on top of managing the bank there are many tasks linked to the public nature of the group.

2. What was the single most important event or development the market saw in 2016?

The major event on the market this year was definitely the Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term referendum in June. We saw extreme volatility on our systems as the British people decided to leave the European Union. This unexpected decision raised additional uncertainty on the market, on top of the concerns linked to the Fed and ECB monetary actions to reflate worldwide growth.

3. What are the biggest challenges that the FX trading community is facing? How do they affect your field?

I think that the biggest challenge nowadays in the FX brokerage community is the access to Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term. Indeed, credit is the oxygen on the FX market and since the global financial crisis, we saw market rules changing for tighter regulation and conditions.

The SNB move in January 2015 has finalized the industry's mutation

The Basel III reforms adopted in 2010 forced prime brokers to revise their credit allocations policies towards certain segments of clients, such as retail brokers, small/medium banks and hedge funds.

The Swiss National Bank decision in January 2015 regarding the EUR/CHF peg finalized this mutation on the industry as PBs are now more reluctant than ever when it comes to providing liquidity to small and emerging business players.

This clearly modified the market structure and participated in the birth of what we call now prime of prime.

4. What is the main message you’d like to convey to London Summit delegates?

In a regulatory environment which is becoming increasingly stringent, especially in the FX industry, we tell our clients that it is now more important than ever to partner with a solid, regulated and reliable banking institution which can provide a significant counterparty to mitigate markets and business risks, as well as leading-edge technology to answer modern finance practices.

Marc Bürki will participate in the CEO panel at London Summit 2016, held on November 15th. Learn more about the agenda here