ANZ gets ready to enter FX algo arena

Australia’s ANZ, one of the country’s top banks, has been developing a foreign exchange algo service that it expects to unveil later this year. Provision of FX algos has historically been the province of the large global banks and the move represents a first for Australia’s banking scene.

ANZ gets ready to enter FX algo arena

Australia’s ANZ, one of the country’s top banks, has been developing a foreign exchange algo service that it expects to unveil later this year. Provision of FX algos has historically been the province of the large global banks and the move represents a first for Australia’s banking scene. “We listen to our clients in terms of what we build and what they’re using elsewhere,” Luke Marriott, global head of wholesale FX at ANZ, told FXAlgoNews.

Marriott said the group has been developing an algorithmic execution service in house that will be released later this year. “We’ve been working on it for the past eight months and we’re just in the final stages of refining that on how we deliver that to our customers.”

Marriott added that there has been a natural progression, not only through the market evolution and the resulting peaks and troughs of volatility but also in more recent times in terms of regulatory change, which is bringing more transparency to the market around transactional costs for service. He said there was a willingness among regulators to see more of a transparent fee-for-service approach as opposed to the price-for-risk mentality.

“We want to have the flexibility as the market progresses to be aligned to those customer bases and maintain our relevance with them,” he said.

Marriott said ANZ traditionally has been a liquidity producer through its own inventory held within its e-engine. The group has been increasingly moving towards electronic trade since launching its Progress Apama platform in 2010 to automate currency flows.

While ANZ is the third largest of Australia’s “Big Four” banks in terms of overall assets, it has a strong franchise in its FX business. In an Asiamoney foreign exchange survey for 2014, ANZ was ranked the top FX service provider as voted for by financial institutions. It was also the highest-ranking Australian bank as voted for by corporates, coming in fourth behind Citi, HSBC and Deutsche Bank. Marriott did not provide more detail on the precise timing of the launch or the specifics of the algo service the group will offer.