The development of algorithmic FX trading and TCA were notable themes during this year’s TradeTech FX Europe event, which was held in September in Barcelona.
Speaking at the conference a panel of FX market participants agreed that the use of algorithms will likely increase. However, uptake has been relatively slow on the buy-side despite the market moving towards an equities style model through more automation.
“We were early participants in the algorithm space ,” said Gordon Noonan, head of FX trading at Schroders Investment Management.
“I’ve seen a lot of peers over the past six months or so, who in the past have told me they would never use algorithms, beginning to ask questions.”
Speakers also highlighted how the growth of algorithmic trading in the equities markets has led to subsequent traction of ‘algo-wheels’ as a method for gauging the performance of FX liquidity providers in establishing the route to best execution.
Whilst the growing popularity of TCA data on the performance of FX algorithms with members of the buy side was another key topic of discussion.