Deutsche Bank to launch NDF algos

Deutsche Bank is developing a number of new algo products and TCA toolsets to be rolled out in 2020, including the launch of NDF algos in key Asian currency pairs by Q3 this year.

Deutsche Bank to launch NDF algos
Vittorio Nuti

Deutsche Bank is developing a number of new algo products and TCA toolsets to be rolled out in 2020, including the launch of NDF algos in key Asian currency pairs by Q3 this year. “There is a lot of activity in the Asian pairs and this is a key focus, although some LatAm pairs are also potentially very interesting,” says Vittorio Nuti, Global Head FX Algos at Deutsche Bank. According to Nuti, the demand for greater transparency is also going to continue to be a strong area of focus this year. But while the number of third party TCA providers has increased, Nuti warns that an area which they cannot realistically compete with banks is in the ability to create a fair risk transfer price to benchmark against. “In our drive to give more control to clients we have released Hot Actions which allow the user to quickly override and transact a specified amount. This feature is already available in house on Deutsche Bank’s UI and is expected to be deployed on third party platforms later in the year.” Ultimately, he says “for each order you’re always going to have a reasonable amount of variance, so it doesn’t necessarily mean that the algo itself didn’t work out. Our new expected range of slippage gives a running tally whether you are inside the expected variance in real-time through our Market Colour App.”