Surging volatility across metals and a renewed focus on riskmanagement are reshaping how liquidity is priced, accessed and managed acrossFX and CFD markets, according to senior industry executives speaking at theFinance Magnates Singapore Summit 2026.The panel, which brought together liquidity providers,brokers, exchange operators and market makers, highlighted a marketincreasingly defined by fragmentation, shifting client behavior and a morecautious approach to risk following sharp moves in gold and other commodities.Fragmentation Persists Despite NormalizationPanelists broadly agreed that liquidityfragmentation, particularly between interbank pricing and retail brokerquotes, remains entrenched, even if conditions have marginally improved sincelate 2025.More from the event: “For Southeast Asia, You Definitely Need IB”: FM Singapore Summit 2026 LessonsAlex Mackinnon, CEO for Asia at Finalto, noted that extremepricing disparities seen during gold’s rally in late 2025 have narrowed, butnot disappeared. “The fragmentation is still there. It’s probably narrowed abit,” he said, pointing to a period when retail brokers were quoting spreads“sub-10 cents when the real market’s probably 30.”That gap has since adjusted, with brokers now pricing “northof 15 cents,” bringing them closer to institutional benchmarks. However,Mackinnon added that brokers continue to face pressure to tighten spreadsdespite underlying market constraints.Stavros Economides, COO at Match-Prime Liquidity, reinforcedthat structural differences in broker models continue to drive pricingdivergence. “We see sometimes retail brokers provide very tight, below-marketconditions… this you can do only if you have your own books,” he said, warningthat such strategies require significant balance sheet capacity to absorbpotential losses during volatile periods.Metals Dominate, and Distort, the LandscapeA central theme throughout the discussion was the industry’sheavy reliance on gold and, increasingly, silver—assets that have become focalpoints for speculative activity and liquidity stress.Grace Chan, Executive Director at Phillip Nova, said theissue extends beyond recent volatility, though recent market moves haveamplified its impact. “Volatility probably put it into the limelight,” shesaid, noting that diversified client flows across asset classes can helpbrokers manage liquidity imbalances.Still, shifting client interest away from gold remains apersistent challenge. “Gold has been the asset that investors and traders… havebeen trading for a really long time,” Chan said, adding that the rise inspeculative activity over the past decade has only deepened that concentration.Yoann Turpin, Co-founder of Wintermute, attributed thisconcentration to leverage and accessibility. Gold, he argued, offers “thecheapest way where [traders] can get the most leverage,” making it a naturalmagnet for speculative capital.Read more: “In Asia, Loyalty Is Earned in WhatsApp Groups and Golf Invitations”: FM Singapore Summit 2026 InsightsAt the same time, Turpin pointed to a broader convergencebetween crypto and traditional markets, with traders increasingly movingcapital fluidly between asset classes in search of volatility. This has spurredinterest in products such as tokenized commodities and weekend trading, furthercomplicating liquidity dynamics.Risk Management Takes Center StageIf one area of consensus emerged, it was the industry’sshift toward more conservative risk practices following sharp marketdislocations in early 2026.Liquidity providers reported a clear increase in risk beingoffloaded by brokers. “The volume we’re seeing from retail-facing brokers hasincreased,” Mackinnon said, attributing this to tighter internal risk limitsand a reassessment of exposure following recent market shocks.Economides echoed this trend, particularly among smallerbrokers. “They can’t afford big hits… so they reduce their levels,” he said,adding that recent volatility has also led to more “toxic flow” and mispricingopportunities in metals markets.The consequences of poor risk management, panelists warned,extend beyond individual firms. “The industry itself doesn’t want anydefaults,” Mackinnon said. “That will just put the industry back five to tenyears.”For brokers, the challenge lies in balancing internalization(B-booking) with external hedging (A-booking). As Vinay Trivedi, CEO of SGXCurrencyNode, put it: “It’s not A or B—it’s somewhere in between. You find thebalance, you stay in the game. You lose the balance, you’re burnt out.”Infrastructure and Trust Under PressureThe discussion also highlighted the growing importance ofinfrastructure resilience and liquidity access during periods of stress.Trivedi argued that volatility exposes the underlyingstructure of liquidity markets, prompting a “flight to safety” toward venuesand market makers with strong balance sheets and inventory. “People want to goback to those market makers who are holding inventory… or to primary andsecondary markets where there’s a marketplace,” he said.Access to diversified liquidity pools—including exchanges,ECNs and bilateral relationships, has become critical to mitigatingfragmentation and execution risk.Meanwhile, brokers are facing operational pressures beyondpricing. Chan offered a glimpse into the day-to-day reality during volatileperiods, describing how teams monitor client exposure and funding levels intothe weekend. “Friday night becomes no longer happy hour,” she said, as firmsassess whether they have sufficient capital to withstand potential gaps.Technology and the Next Fault LineAs markets become more automated, panelists warned thattechnology risk is emerging as another critical vulnerability. Heavy relianceon pricing engines, margin systems and cloud infrastructure leaves firmsexposed to outages at precisely the moments liquidity is most strained.While not yet fully explored in the session, the referenceto past infrastructure disruptions, such as regional cloud outages, underscoredthe fragility of increasingly digitized liquidity networks.A More Cautious, Complex MarketTaken together, the discussion painted a picture of anindustry adapting to a more complex and risk-sensitive environment.Fragmentation remains a structural feature, metals continue to dominate tradingflows, and brokers are recalibrating how much risk they are willing, or able tohold.At the same time, evolving client behavior, cross-assetconvergence and technological dependencies are adding new layers of complexityto liquidity provision.The result is a market where access to capital, technologyand diversified liquidity relationships is becoming as important as pricingitself, and where, in periods of stress, the ability to manage risk mayultimately define who remains standing.This article was written by Jared Kirui at www.financemagnates.com.