Nicola Tavendale

Exploring the role of internalisation in FX algo execution performance

May 2024 in Industry Views

Internalisation as a concept has shifted in perception among the FX community, moving from a poorly understood offering to becoming a sought after value added service, particularly in the use of FX algos. So what work have algo providers done to demonstrate the benefits of internalisation and how are they able to differentiate their offering to make internalisation part of their competitive edge? Nicola Tavendale writes.

Client’s feedback suggests that internalisation is not actually defined in any one common way across the FX market, which itself can lead to misunderstanding or lack of clarity around exactly what it is and the benefit it can bring, says James McGuigan, FX Algo Product Manager at Citi. He explains that, in its most basic form, internalisation can simply mean all or a part of an order is filled by the provider bank rather an on an external venue. However, Client’s feedback suggests that internalisation is not actually defined in any one common way across the FX market, which itself can lead to misunderstanding or lack of clarity around exactly what it is and the benefit it can bring, says James McGuigan, FX Algo Product Manager at Citi. He explains that, in its most basic form, internalisation can simply mean all or a part of an order is filled by the provider bank rather an on an external venue. However,

Client’s feedback suggests that internalisation is not actually defined in any one common way across the FX market, which itself can lead to misunderstanding or lack of clarity around exactly what it is and the benefit it can bring, says James McGuigan, FX Algo Product Manager at Citi. He explains that, in its most basic form, internalisation can simply mean all or a part of an order is filled by the provider bank rather an on an external venue. However,

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