Despite notable surges in revenues generated by non-bank liquidity providers (NBLPs), traditional investment banks still hold a larger piece of the pie, commanding more of the overall global markets’ revenue pool.
NBLPs have continued to expand their market-making capabilities over the last few years, with revenue growth booming to $114.4 billion in 2025, however global investment banks still come out on top – not just when it comes to bespoke and structured products, but also their relationships with corporate clients.
As found in a recent Coalition Greenwich report, the long-standing, holistic client relationships formed by investment banks provide some barriers to entry for NBLPs and often remain the first ports of call for clients looking for capabilities such as hedging FX exposure.
Speaking to The TRADE, Raman Kalra, head of NBLP competitor analytics at Coalition Greenwich, said: “Banks remain a substantial force across global markets and reported robust growth in FY25, highlighting the broad-based strength of the trading environment.
“Large investment banks still have a stronghold on a range of products, including bespoke and structured solutions, where NBLPs do not currently compete and barriers to entry remain high.”
Read more – Traditional relationships still anchoring buy-side as automation ramps up in FX markets
However, the study also indicates that institutional client interest in NBLP liquidity is on the up, particularly in highly liquid electronic markets, such as equities, US Treasuries, ETFs and listed derivatives.
When unpacking the drivers behind this interest, the report pointed towards recent bouts of volatility, as well as developments in the expansion of digital assets and the proliferation of ETFs.
Specifically, topline NBLP revenue pools increased by 45% from 2024 to 2025, however, as Kalra highlights, the pure market making component of NBLPs is growing at a more modest pace, compared to topline revenues.
“While pure market making remains the foundational activity of NBLPs, a growing share of the 2025 revenue growth was driven by principal risk and investments,” he added.
“Supportive market conditions, valuation uplifts on direct investments and continued market structure evolution all combined to create a positive environment for NBLPs.”
Read more – ETF market expected to boom in 2026 despite persisting liquidity obstacles
Kalra also emphasised that while these results show strong growth for NBLPs, drivers behind this may become less durable, as market conditions become potentially less favourable, and electronic liquidity provision expands to be more widespread.
He added: “While 2025 represented a strong year for NBLPs with structural tailwinds supporting the industry, the sustainability of this level of growth remains an open question.”
Reflecting on the findings, the competitive landscape for NBLPs will certainly be one to watch looking ahead, and the question now appears to lie with whether technology and trading performance will continue to evolve, and if NBLPS will increasingly move into territory traditional investment banks have long dominated.
Coalition Greenwich created its ‘The expanding role of NBLPs: Inside FY25 revenue growth’ report based off findings from its NBLP index.