Buyside Perspectives

Understanding internalisation and realising
its benefits

Users of FX Execution Algos are becoming increasingly interested in their providers’ internalisation rates, as the buy-side seeks to optimise performance and differentiate between available offerings. It is crucial to understand the details behind headline internalisation rates to ensure best outcomes.

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Exploring the nuances of FX algo trading strategies and provider selection

Our previous article in this publication on the intricacies of FX algo trading instigated some engaging discussion and feedback – thank you to all involved. Two themes seemed to resonate with readers: the strategic considerations of Execution Scheduling algos such as Time-Weighted Average Price (TWAP), and what differentiates algo providers. In response, this piece delves deeper into those topics.

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Navigating the shift in FX execution strategies

In foreign exchange (FX) markets, participants are continuously seeking ways to enhance efficiency, reduce costs, and optimize their trading strategies. In particular, participants are looking to…

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Measuring FX algo performance: Views from the buyside

Algorithms are more popular than ever in FX. That statement isn’t a surprise to market participants, especially on the buy side. The Bank of International Settlements December 2022 Quarterly review highlighted growing market participants highlighted …

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Exploring how algos are becoming increasingly central to FX trade workflows

Buy-side algo usage in FX has steadily risen over the past decade. Algos were once the domain of only the most sophisticated market participants with enough resources to devote to development and research.

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Closing the information gaps – Helping the buyside use FX algos more effectively

As the three year review of the FX Global Code progresses, we will likely see that the industry as a whole believes that buyside participants will benefit from increased transparency of their algo executions, says Nickolas Congdon, Head of eTrading Services at Commerzbank.

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Improving and fine-tuning the task of FX algo trading: Viewpoints from the buyside

Algo adoption in FX has lagged other markets and one of the keys to increasing its adoption is to listen to buyside demands, So what are the issues these traders encounter and how can service providers address them?

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Passive versus Aggressive Exploring the underlying decision making behind FX algo strategies

For the most part of this millennium, buy-side firms have been looking to take more control of their trading processes, from direct market access to the use of execution algorithms, firstly in equities but now ….

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When it comes to algo-facing liquidity pools Still waters run deep

FX traders at buy side institutions have embraced algorithmic execution in increasing numbers over the past few years. In part, their decision to use this execution style has been driven by a concerted sales effort that promises tighter execution spreads

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Implementation and usage – the benefits of achieving a more solid understanding of algorithmic FX toolsets

It is no secret that algo trading in FX is increasing. After steady but somewhat modest growth for a number of years, the last year in particular has seen a faster uptake in usage. This has been prompted by a number of factors, with MiFID II’s increased focus on best execution in particular prompting many to reach for algo strategies as a way to evidence execution quality. While algos can indeed provide a wide variety of benefits, it is important to be thoughtful about their implementation and usage.

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