UBS identifies three key trends shaping the FX algo market
“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 experience. “Our view has always been don’t add another venue unless it has differentiated liquidity, so liquidity we can’t currently get, otherwise all we’re really doing is adding to information leakage, which is a key concern for our clients,” explains Goodman....show more
360T expands algo suite to meet growing corporate demand
In the last four years, the number of liquidity providers offering algo execution strategies has risen significantly, with currently close to 20 banks now providing services. This in turn further raises the profile of FX algos among corporate treasurers, with a growing number becoming curious about their usage and benefits, explains Simon Jones, Chief Growth Officer of 360T, Deutsche Börse Group’s ...show more
UBS launches Orca
In an important step to expand its liquidity offering to clients, UBS has developed a new smart-order router dubbed Orca, which stands for optimal routing control algorithm. The first algo is Orca-Direct, which gives clients access to a wide variety of liquidity sources, including ECNs, futures and the bank’s principal price....show more
Societe Generale goes independent for TCA
Societe Generale is a relative newcomer to the FX algo space, having been active for about two years. Since then the bank has seen a huge growth in demand across a client base that comes from the hedge fund, real-money, and corporate communities in the US and Europe. The bank has three main algos: TWAP, or an averaging algo; stealthy, named after the bird, Nightjar; and aggressive algo called Falcon. Keith Hill, global co-head of e-FX sales at Societe Generale describes it as a “streamlined” approach. ...show more
Advanced Markets and Fortex launch open standard Algo engine
Advanced Markets Ltd., a prime-of-prime solutions provider, and Fortex Inc., a leading independent developer of real-time, multi-asset trading platforms, have released Algo X, a new open source algorithmic engine that enables traders to develop algorithms in standard computer languages including JavaScript and C#....show more
TradingScreen launches FFFX Index for FX
In what it called a first for the industry, TradingScreen Inc. has announced it has launched the first fair FX pricing index: FFFX. The company said the FFFX Index was developed as part of the larger TradeAnalytics suite, providing multi-asset class solutions for pricing (Market Data, Indices, Valuation), TCA services (pre-trade, in-trade and post-trade) and compliance (RiskHub, Market Surveillance)...show more
Growing use of Algorithms in FX Trading
The adoption of algorithmic trading in the FX market is rising due to increasing electronification of FX trading, says Arin Ray, Analyst for Celent’s Securities & Investments practice. Not only is the number of buy-side firms engaged in algorithmic FX trading rising, said Ray, but these firms are also using algorithms to trade in more volume than they did in the past. Hedge funds, asset managers, prop traders and retail aggregators are the main participants in this market....show more
