Bank of America shines light on BIS data and FX algo trends

Tan Phull
Tan Phull

The Bank for International Settlements (BIS) Triennial Central Bank Survey of FX Markets 2022 highlights that large dealers continue to play a significant role and make up for a greater proportion of volume share when volatility in the FX market spikes, says Tan Phull, Head of FX Algos at Bank of America (BofA). Commenting on the key trends demonstrated by the data, he notes that this may have a significant impact on clients and their FX algo selection. “The relative decline in trading with non-reporting banks, alongside an increase in cross border interdealer trading, indicate a flight to quality when the execution environment becomes challenging,” adds Phull. “Financial institutions continue to factor this aspect in when selecting their algo providers. BofA’s Whisper strategy, which allows agency orders to interact with our global in-house franchise liquidity, continues to see increasing adoption amongst real money and high frequency segments in particular.”

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