Commerzbank extends outright FX algorithms

Nickolas Congdon
Nickolas Congdon

Commerzbank has extended the max tenor range currently supported for FX forward algos from three months to six months, a move which it says is in line with client demand. According to the bank, this is a unique approach on how to manage and execute FX algos with a forward value date through executing the forward points in flight for each clip as the order fills.This significantly differs from applying the forward points to the parent order once the spot element is completed, which for passive strategies may be several hours after order placement. Commerzbank says it believes applying the points in real-time as the order works provides clients with a more accurate, fair and transparent overall execution. “We have received positive feedback from not only our corporate clients, but also the asset management community on how we manage forward algos,” says Nickolas Congdon, Head of eTrading Services at Commerzbank. “Showing clients in real-time the spot fill rate and forward points on each clip as the order works allows traders, treasurers and portfolio managers real-time transparency on their overall execution price. There are no surprises once the order is filled.”

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