Refinitiv’s FXall sees sharp rise in buy side adoption of FX algos

Refinitiv’s FXall platform recorded a rise of 41% year-on-year for Q2 2019 in the use of execution algorithms by buy-side traders. The move follows a number of recent enhancements and the roll out of new functionality by the multi-dealer FX trading platform to its existing algo trading suite.

Refinitiv’s FXall sees sharp rise in buy side adoption of FX algos
Jill Sigelbaum

According to Jill Sigelbaum, head of FXall at Refinitiv, buy-side traders are becoming more aware of the potential benefits of bank-provided execution algos. As a result, traders are increasingly folding algos into their menu of execution options, alongside more traditional methods such as multi-dealer request-for-quote (RFQ) and bilateral streams of executable prices.

“As a leading multi-dealer platform for FX trading, FXall is committed to providing our clients with unparalleled choice in execution tools, including advanced algo trading workflow as they seek smarter ways to access liquidity with minimal market impact,” says Sigelbaum. 

2019 enhancements

Among the notable enhancements made this year to FXall’s algo trading suite is the launch of new functionality which enables users to slice algo tickets into several child orders. This in turn provides them with greater flexibility to work large tickets over time in order to minimise market impact and information leakage.

Further releases have also included creating the ability for users to pause the execution of an algo. By doing so, traders are able to exert more control over their execution, allowing them to time to monitor market conditions and amend the algo’s execution parameters, if needed, before either resuming or cancelling the algo’s execution.Sigelbaum adds that FXall is witnessing growing adoption of algos across all types of institutions, ranging from asset managers, to hedge funds and large corporate clients. 

Analytics

FXall also offers a suite of trade performance analytics, which includes a growing range of performance metrics to help users assess the quality of their algo execution in a consistent way across providers. 

The platform believes a key part of its appeal to institutions is that they are able to access over 150 algos through the platform from some 22 bank algo providers. Firms can also benefit from pre- and post-trade workflows, as well as a single interface and user experience across all 22 algo providers, according to the FXall. 

The growth in algo trading has run alongside continued growth in overall client activity on the FXall platform this year. This includes a new daily volume recorded on the platform on 26 June, when overall FX daily volumes reached $396 billion.

FXall
FXall offers Transaction Cost Analysis to help clients evaluate the cost and effectiveness of their execution strategies