Hedge Funds Face More Scrutiny as They Expand FX Market Making
- KCG sees growth for nontraditional foreign-exchange players
- Most firms already deal indirectly with nonbanks: Eaton Vance
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Be careful what you wish for -- that’s the advice from State Street Corp. to the newest market makers in the $5.3-trillion-a-day foreign-exchange market.
As hedge funds and automated-trading firms ramp up their currencies businesses, they’ll probably attract more interest from regulators, said Chip Lowry, senior managing director at State Street Global Markets in Boston, in a conference call Tuesday hosted by Greenwich Associates.