Although a large number of trading platforms may fragment market liquidity, a reasonable number of trading platforms in the Indian spot FX market with daily trading volume of about $ 8 billion will not adversely impact the liquidity. There are at least two major platforms in the spot trading of many currencies.
I would suggest that the FEDAI and market participants may work together to promote competing trading platforms in the overall interest of market stability and efficiency and reducing the cost of trading. The way forward 28. The Indian foreign exchange market has come a long way in terms of variety of instruments, participants and the overall market turnover.