We examine which FX buy side sectors are now becoming the biggest users of execution algorithms and in what ways the focus on transaction cost analysis in FX is further stimulating the use of algorithms as a key component of best-execution toolsets.
Algorithmic electronic trading strategies in Asia-Pacific appear to be poised for continued growth; however, more consistent regulatory regimes are required to promote further development, writes Gareth Pyburn, Managing Director, Insight Legal Asia.
In the past year, what changes have you seen in the appetite for FX algos usage? J.P. Morgan’s algo order volume as a percentage of spot has increased in six of the last seven quarters and the number of unique users trading algos has grown in every quarter since Q3 2017. Clients have also reacted […]
Tradepoint Systems plans to launch two in-house FX fixing algos which are designed to help mitigate market impact and improve the execution quality which banks can offer to their clients. Initially being rolled out to two banks in Q4 2019, the algos are engineered to offer an alternative for banks with buy side and large […]
“While Orca-Direct is itself an algo, it is also the basis for our smart order router for all of the UBS algorithms”, Goodman explains. Since its launch in May 2018, UBS has not added any additional venues, choosing instead to focus on curating the liquidity, the probability of execution and working to improve clients’ trading […]
Citi has developed and implemented a state of the art ultra-low latency Internal Matching engine, CitiFX Match and according to the bank, it is now focused on updating each algo strategy to fully leverage CitiFX Match, enabling access to what is effectively one of the industry’s largest spot liquidity pools. “As clients continue to incorporate […]
RBC Capital Markets has started distributing an improved Transaction Cost Analysis (TCA) report to provide clients with more detailed execution analysis and additional illustrative features. The announcement follows last year’s enhancements to its eFX offering, including the integration of real-time reporting via TCA provider, BestX. “Whereas provision of our post-trade TCA is something we have […]
Extending the coverage In certain jurisdictions, significant new regulation – in particular MiFID II – has been introduced to cover this area. However, there are certain types of FICC related activity which are not subject to MiFID, such as trading of spot FX and physical commodities not on a MiFID regulated venue, and this Statement […]
A new report from Greenwich Associates has found that approximately 20% of institutional foreign exchange trading volume is now executed via algos, and FX is likely to move steadily in the direction of equity markets, in which “algos” account for more than half of trading volume. “With all of the data available demonstrating the benefits […]
Nordea is launching a suite of six FX algo strategies this summer. Scandinavian institutions, said Kasper Folke, Nordea’s head of e-FX, have increasingly moved away from principal risk transfer towards execution algos. “Some clients are using algos to find new ways of proving best execution, while other clients utilize algos as a means to improve […]
