Bank of America is rebuilding all of its existing algos using a new common architecture for both FX and equities, in a move which it says will significantly boost the capabilities of the FX algo suite. According to the bank, the rebuild will result in the FX algo suite offering the range of functionality and customisation that is already available through its best-of-breed equity algos. “This is a big project and a significant investment in the FX algo business,” says Tan Phull, Head of Global FX ExecutionTrading Services at Bank of America. “The equity algos were built recently and are very much the latest and greatest. Rather than trying to build something separately in FX that does the same thing, we gain tremendous scale advantages by using the same algos across both asset classes, obviously catering for the microstructure nuances of each asset class separately.”The bank has already used this model to build its latest FX algo, Decipher, an implementation shortfall algo which is essentially the same IS algo used in its equities business, Phull explains. He adds: “We’ve been really pleased with how it works. And so we’re doing the same thing now across all the other FX algos. This in turn help us to make them even more customisable, to further improve the way that they access liquidity and overall, to significantly benefit our clients in achieving their execution outcomes.”
