Vittorio Nuti, Global Head of LD & FX Algo Trading at Deutsche Bank discusses some of the key issues regarding Market Impact.
A new study from Coalition Greenwich finds that the disruptions caused by the COVID-19 crisis may have long-term effects on the behavior of FX market participants.
Technology has improved to the point where algo trading is fast becoming the norm.
By Howard Grubb and Stephan von Massenbach, Directors at Modular FX Services
The Bank for International Settlements (BIS) has released one of the most detailed reports produced to date exploring the drivers and implications of the rising use of Execution Algorithms (EAs) in FX markets.
Most interaction with wholesale FX market venues will involve the use of some form of decision “algorithm”, in addition to those services that are traditionally thought of as “automated execution algorithms”. It is essential to design these systems for safe, orderly operation and for regulatory compliance. The various regulations provide many aspects to consider in relation to the deployment, operation and review of algorithmic trading. We present below some high-level points for thinking about algorithmic systems in FX, the regulatory issues that apply, and the implications for systems design and algorithmic choices.
In recent years it has become increasingly important for banks to safeguard their client’s trading information using segregated execution desks.
A new survey of 50 leaders in FX trading – 57% of which work for firms managing over $100bn of assets – has been commissioned by The Finance Hive team.
Two years after its introduction in 2017 the FX Global Code (FXGC) is a defining ideal of the FX market, with significant sell-side and more recent buy-side adoption. The FXGC principles are not a regulatory requirement but foster best global practices to avoid market abuse. Additionally, each regulator also has its own standards for monitoring algo and human trading activity.
