JP Morgan sees surge in adaptive FX algo use

JP Morgan has revealed a strong preference among clients for its float algo and other adaptive FX algo types even during the heightened levels of FX volatility caused by the market reaction to Covid-19

JP Morgan sees surge in adaptive  FX algo use
Andrew Cole

JP Morgan has revealed a strong preference among clients for its float algo and other adaptive FX algo types even during the heightened levels of FX volatility caused by the market reaction to Covid-19. According to Andrew Cole, FX Algo Product Manager at J.P. Morgan, the float algo had already been the most popular algo strategy for 12 consecutive months, but what was most striking in recent weeks was that in spite of the volatility, clients continued to see the value in the float and other order types that adapt to the market, rather than reverting to limit based algos (as seen during other significant events such as Brexit or the US elections).

“As we continue to refine our strategies, our focus has been on how we can make the way in which we adapt to market conditions more intelligent,” Cole adds. Clients who have already migrated to the upgraded Execute are placing more simple orders (TP + SL) than ever before, Cole adds. “Following our launch of algo orders on the upgrade, clients have reacted really positively to the changes, especially the quicker order entry capabilities,” he says. “Our limit algos (Sliceberg and Panther) provide a similar execution experience (execute at a specific limit) to a take profit but with access to external liquidity clients placing algos have more opportunities to get completed faster.” Read more on page 5.