The new functionality, created in response to client demand, allows traders to trade cross-pairs through triangulation to achieve better prices. By splitting the trade across more liquid currency pairs then triangulating the liquidity through a common base currency, it allows the benefits of algorithmic trading to extend to less liquid cross pairs.
According to Greenwich Associates, real-money investors and corporate treasuries that commonly need to trade these illiquid pairs overwhelmingly value best execution and price above other factors when it comes to choosing a dealer. Pragma360’s new functionality allows banks to maximize the benefits of algorithmic trading, taking advantage of Pragma360’s high performance, low-latency, customizable execution algorithms, comprehensive TCA reporting and real-time monitoring.
David Mechner, CEO of Pragma Securities, comments: “Our clients want to extend the benefits of algorithmic trading to illiquid cross pairs. Thus, offering triangulation was a natural evolution for Pragma. Triangulation of more liquid pairs results in a higher quality execution because of narrow spreads and greater liquidity. As a result, bank’s leveraging Pragma360 provide a better trading experience to their clients.