Hedge funds outshine banks as API price-makers

The study of trading activity on EBS between January and October this year revealed that, while some APIs were either 100% price-makers or takers, on a cumulative net aggregate basis, bank API traders only made prices around 46% of the time. Hedge funds carried out most of the price-making during the period.

"It is interesting because when we first put hedge funds onto the system three years ago, there were concerns that hedge funds would be net takers of liquidity," said Steve Toland, head

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