Ajay Kataria

Barclays finds internalisation is key priority for FX algo users

December 2023 in Top Stories

Barclays has conducted its first Global FX Market Structure Survey, with the findings revealing a number of insights directly around how clients are using FX algos currently and the drivers behind those choices. Among the algo specific findings, the survey revealed that when it came to reviewing a dealer’s algo functionality, the leading factor cited by 33% of clients was that internalisation was one of their most important areas of consideration. Following this, the configuration of algos at the order level was the second leading factor cited by FX algo users. In addition, the survey revealed the clients were mainly allocating their algorithmic execution based upon historical performance, with 29% stating this was key to how they allocate that flow to their dealers. 

“This survey provides client driven feedback and the findings reflect our biggest areas of focus as a business,” says Ajay Kataria, Head of Electronic FX Distribution, Americas at Barclays. “As such a large franchise, we keep liquidity within our four walls while focusing on being able to offer our clients what they need. FX algos are a mature product and we continue to differentiate by performance, liquidity provision and helping clients to navigate the changing FX market structure.”