Deploying your own product and brand: Assessing the benefits of outsourced algorithmic FX trading services
Technology has improved to the point where algo trading is fast becoming the norm. What role will white and private label providers play as FX algo adoption continues to rise and are their benefits real?
A new study from Coalition Greenwich finds that the disruptions caused by the COVID-19 crisis may have long-term effects on the behavior of FX market participants.
In a recent study conducted by Coalition Greenwich, more than 40% of FX traders revealed they had used algos during the course of last year, while nearly the same share say they expect their use of FX algos to increase.
As trading volumes increase and client expectations become more complex, the pressure on trading desks to improve execution performance is steadily increasing. Traders are now turning more frequently to algorithmic trading …
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Canada has a tight-knit financial community, a strong focus on best execution and a degree of sophistication not often found in other markets. These factors taken together mean that algo usage is gradually coming on stream. Meanwhile, the competition among providers is fierce.
In the fragmented, fast-moving world of foreign exchange, there are plenty of arguments to be made as to how algorithms can give the buy-side a helping hand in sourcing liquidity, reducing signalling risk and keeping market impact to a minimum. Yet to date, the bulk of the real money has been following a more traditional approach when it comes to execution.
The prevalence of aggressive high-frequency trading activity can be measured and our latest research shows striking differences by asset class. Understanding the proportion of aggressive high-frequency traders in the markets at any given time helps traders dramatically improve their trading performance.
We explore in what ways factors that drive a firms execution requirements will influence the most appropriate FX algorithms for them to use and how buy-side clients are increasingly looking to pick and choose algorithms according to what they wish to achieve in any given point in time.
information & Resources
FX algo and TCA discussions at the recent TradeTech FX event in London
In September, TradeTech FX London returned with a new hybrid flagship conference format, with speakers and delegates convening in person at the Hurlingham Club in London, joined by further speakers and delegates online. FX algos were once a key focus across the two days, with dedicated roundtables, an in-person interview and a virtual All-Star panel among the leading FX algo and TCA discussions.
Podcasts & Webinars
Algo Types: Accessing Spot Contingent Forwards
and NDF Algos
Thursday April 14th 2022 @ 8am. Eastern time
Understanding how the LPs deal with Spot contingent Forwards where clients can set a forward date on order entry and the Algo would automatically roll forward after it has executed. Popularity of NDF currencies with respect to deliverable currencies for Algos. Electronification of the NDF inter-bank market and improved liquidity.
Algorithmic FX Trading Handbook 2021
An essential guide to FX algo trading and some of the key products available.