Until recently, algo usage was predominantly concentrated in Northern Europe and the US. Nomura’s e-FX team has however noted that while algo uptake in these regions continues to grow, this is now being joined by increased client interest from EMEA and Asia, as well as some more mature markets. In line with these changing algo trends, Nomura recently made two senior hires to its e-FX teams in Singapore and London. Ashvin Parkash joins the Singapore office as global head of e-FX distribution, prior to which he served for five years as head of e-distribution for Asia with BNP Paribas.
Ian Daniels also joins the London office as head of e-FX distribution, EMEA. Before joining Nomura, Daniels was with RBS/Natwest for over two decades where he held a number of FX roles, most recently as head of e-FX sales, EMEA.
Parkash explains that in Asia, Nomura’s algo user client base is primarily located in Australia, Singapore and Hong Kong, but with new interest coming from other locations. “While the main demand tends to be for G10, we are also seeing increased interest in EM currencies from both the CEEMEA and Asia regions,” Parkash adds.
There is also growing demand for algo strategies across Nomura’s whole client base, which is mainly driven by the real money names using algos in their quest for best execution, says Daniels. “The hedge fund community sees value in using our algos for larger executions and we continue to see more usage from them,” he adds. “Larger banks looking to optimise execution are also showing deeper interest in understanding how our algos can assist them.”
The Nomura algo suite is currently available on both its single dealer platform and Bloomberg but will soon be making its strategies available on the major third-party venues as well. According to Parkash, Nomura will also be further modifying its TCA solution over the coming months to ensure the information provided continues to be relevant. “In addition, we will continue to optimise the available strategies and increase flexibility to enhance the user experience – we are taking direct feedback from clients and incorporating their requirements,” says Parkash. In general, although Nomura has only relatively recently entered the algo space, client take-up has been strong, Daniels notes. “Clients can choose to allow the algo to perform in default mode or tailor it specifically to their needs. The access to liquidity, flexibility and customisability we offer are proving extremely popular,” he adds.