Tradition Financial Services, the interdealer broker, is to launch an electronic platform for spot FX trading backed by several of the market’s largest banks, a move that comes as European banks seek trading platforms which neutralise the more predatory activities of high-frequency trading firms.

The project marks the culmination of several years of effort by the market's largest foreign exchange dealers to establish a bank-led alternative to leading interbank platforms. These have become increasingly dominated by high-speed proprietary trading firms.