The Rise of the FX Algo Wheel

FX Algo usage is being driven by two primary factors: lower execution-cost and higher execution-quality. Both have always been used to improve relative returns. But this push has taken on new urgency, following a raft of recent Regulations around the globe. The past few years have witnessed legislation such as Dodd-Frank, EMiR, MIFID2 and Basel III. All sprouted from a desire to reduce systemic risk. Whether or not they’ve achieved their aim is unclear. But they have accomplished one thing; FX Algo usage is being driven by two primary factors: lower execution-cost and higher execution-quality. Both have always been used to improve relative returns. But this push has taken on new urgency, following a raft of recent Regulations around the globe. The past few years have witnessed legislation such as Dodd-Frank, EMiR, MIFID2 and Basel III. All sprouted from a desire to reduce systemic risk. Whether or not they’ve achieved their aim is unclear. But they have accomplished one thing;

FX Algo usage is being driven by two primary factors: lower execution-cost and higher execution-quality. Both have always been used to improve relative returns. But this push has taken on new urgency, following a raft of recent Regulations around the globe. The past few years have witnessed legislation such as Dodd-Frank, EMiR, MIFID2 and Basel III. All sprouted from a desire to reduce systemic risk. Whether or not they’ve achieved their aim is unclear. But they have accomplished one thing;