BNP Paribas says it is seeing strong demand for its new Iguana execution algorithm. The recently launched algo sits in between its popular Chameleon and Viper products and allows clients to execute deals over a user-defined time period. Chameleon reduces market impact by switching in and out of different algo strategies, according to market conditions, but does not have set timeframes in which to execute trades. Rather, it estimates the time a given deal will require but still allows the user to switch modes and trade more or less aggressively depending on the evolving situation. At the other end of the spectrum, Viper will execute as quickly as possible. But clients told BNP Paribas that they wanted to be able to define execution periods for some orders as well, so the bank developed Iguana to offer the same popular features as Chameleon but with timeframe parameters.
“We’ve seen great success with Iguana,” Asif Razaq, global head of FX algo execution at the bank, told FXALGONEWS. “Clients are now using it as an alternative to the WM Fix.” The WM Fix can cause big spikes in trading around the fix times, particularly the 1600 London fix. With Iguana, Razaq says clients can set a timeframe on either side of the fix to minimise the degree to which their orders get unduly impacted by trading spikes at the time of the fix.