TradeTech FX report reveals growing importance of FX algos and TCA

TradeTech FX has released its annual FX report: Risk vs. Revolution: Regulating Innovative Automation, based on a survey of 100 heads of FX trading, heads of FX and those of an equal standing from leading buy-side firms across Europe.

TradeTech FX report reveals growing importance of FX algos and TCA
Daniel Chambers

TradeTech FX has released its annual FX report: Risk vs. Revolution: Regulating Innovative Automation, based on a survey of 100 heads of FX trading, heads of FX and those of an equal standing from leading buy-side firms across Europe. Of those surveyed, some 23% of firms revealed that algos were their most commonly used benchmark to measure their FX execution. Of those, 16% specifically use TWAP while 7% opt for VWAP algos. In terms of FX TCA use, some 34% believed this was best used in counterparty decision making. “When it comes to FX TCAs and counterparty decision making, I think the cost of execution can be greatly impacted by who you’re executing against. Some LPs are not good at masking the flow and create a significant footprint in the market,” said Daniel Chambers, Head of Trading, Sequoia Capital Fund Management and co-contributor to the report. Chambers will also moderate a panel on FX algo innovation at the event, which takes place this September in Barcelona.

For more information about this report please visit:
https://bit.ly/2ZbAU8c