Commerzbank sees increase in corporate use of FX algo strategies

Commerzbank has seen an increase over the past year in the number of corporate clients using its unique range of FX algo strategies and Transaction Cost Analysis (TCA) solutions. According to Nickolas Congdon, Head of Electronic Trading Services at Commerzbank Corporate Clients, the largest driver behind the growth in use has been the increase in regulation and a need for greater transparency. For several years the bank’s FX businesses, including its risk transfer business, has been algorithmically driven.

Commerzbank sees increase in corporate use of FX algo strategies
Nickolas Congdon

Commerzbank has seen an increase over the past year in the number of corporate clients using its unique range of FX algo strategies and Transaction Cost Analysis (TCA) solutions. According to Nickolas Congdon, Head of Electronic Trading Services at Commerzbank Corporate Clients, the largest driver behind the growth in use has been the increase in regulation and a need for greater transparency. For several years the bank’s FX businesses, including its risk transfer business, has been algorithmically driven. The bank has now been able to leverage its internal set-up and investment and development to offer its clients advanced execution solutions and analytics on algo orders, but now also is one of the first banks to offer TCA for its vanilla resting orders as well.

“We have been able to offer more transparency to our clients because every order, whether it is a vanilla resting order or an algorithmic order, now comes with a TCA report,” explains Congdon. “All the orders, both algo and vanilla, are completely segregated away from our market making desk physically and in technology terms eliminating any conflicts.”