What features and services that support algo user workflows are now available on FXGO?
FXGO offers clients a comprehensive end-to-end workflow from order staging and optimization to algo strategy selection and post-execution quality analysis. In addition, FXGO provides a unified routing methodology to more than 200 algorithmic order strategies from major, regional, and non-bank providers, allowing clients a comprehensive choice of liquidity and execution styles. Execution processes over FXGO are then further complemented with pre-trade news, pricing and analytics offered by the Bloomberg Terminal as well as integration with providers’ own analytics to offer further insights and predictive outcomes of their proprietary strategies. FXGO captures all micro elements of partial fills of respective algo executions which can then be analyzed via Bloomberg on the order by order or aggregate basis via Bloomberg’s cross asset post-trade TCA tool (BTCA) or be available for the automated export to clients’ own TCA tools.
Are there any new developments in this area that you would be able to share with us?
FXGO continues to invest in our algo offering by enhancing the pre-trade order optimization toolkit with cross value date netting to optimize spot exposure, while also expanding instrument selection beyond spot and non-deliverable forwards into precious metals and swaps. We are also broadening liquidity selection by integrating with regional providers and enhancing our own analytics to assist with appropriate execution choices.
What were the main drivers behind these new initiatives?
FXGO strives to stay ahead of anticipated client demand, and when coupled with client feedback, drives much of our development. We added support for swaps to our algo offering and are currently working on expanded liquidity selection through integration with several liquidity providers. Given liquidity in swaps is challenging due to various regulatory and capital constraints, we expect our clients to welcome this development. Additionally, usage of benchmark orders continues to increase and so we have made considerable enhancements to our workflow solutions for both clients and dealers to offer bulk-routing and bulk-pricing capabilities for benchmark orders.
How can improved FX algo analytics support client workflows?
As each algo provider offers a whole range of strategies with proprietary parameters, clients are looking for tools to help them navigate and rationalize this complex environment to allow for more intelligent decision making prior to and during order execution. Bloomberg’s Algo Analytics hosting service helps address this demand by allowing providers to host their pre-trade and running order analytics within the order execution workflow of their FXGO clients. At present, there are seven algo providers offering their integrated analytics services for their clients. We also continue to see the demand for provider independent analytics and so FXGO is now fully integrated with BTCA. This integration allows clients to analyze their algo execution against various Bloomberg market data sources and benchmarks to further enhance their pre-trade algo provider and strategy selection.
How will Bloomberg continue to improve efficiencies in algo execution for the buyside in the coming year – and beyond?
FXGO will continue to invest and innovate to be at the forefront of the FX industry transformation as it adapts algo execution. Partnering with our existing algo providers and onboarding new ones to expand our instrument coverage into emerging markets, NDFs, precious metals and derivatives will be key to success. We are also excited to introduce the next generation of pre-trade decision support tools to integrate our composite pricing, news, analytics and cost models into all relevant trading workflows to optimize and automate the trading process for our clients.
