Our suite of FX algos has proven very robust and continues to be very successful among our client base, but in recent months we have been busy working on adding additional features and tools which will enhance even further the value of the algo and analytics suite.
Live TCA
In particular, we recently launched our new Live TCA feature, which is now available via our internal portal for every client. Many of our largest buyside clients are now at a stage where Live TCA had become more of a ‘must have’ than a ‘nice-to-have’ tool and so we prioritised developing and releasing this additional feature in response to this demand. Not only does the Live TCA tool show the algo’s performance in flight, but we also chose to include key indicators that would help the client hone in on where they might improve the performance of the algo and their overall execution. As well as showing the client key information such as when they might need to speed up or slow down the algo, the tool also enables them to change the limit price or even switch to another algo strategy during the life of the execution. It is a powerful tool which can significantly improve or enhance FX algo performance.
NDF algos
We also launched NDF algos at the end of last year, which are currently available on both our internal platform SG Markets, Bloomberg, 360T and BidFX. Initially we have focused on developing G10 and EM pairs and now we are working on sharing with our clients the benefits of executing NDF algos versus going through risk transfer.
In addition, and again following client feedback, we have also started working closely with key external platforms and vendors, such as 360T and FXAll, to align our algo functionality with these multi-dealer platforms. This is due to growing demand from clients to be able to access our algos and toolsets on these platforms and the platforms are, in turn, notably adding additional resources to expand their FX algo offering. The aim for us is to be able to offer our customers the same level of service across all external venues. Our algo offering on our single dealer platform and through our API is proven to be robust and reliable, now we want to share these capabilities across all venues where our clients are to found.
Nightjar
And finally, our ‘best-seller’ is without doubt our passive algo strategy, Nightjar. The speed of Nightjar’s execution was originally hourly, based on the liquidity curve of the intrabank market. However, we began to observe that sometimes Nightjar was accelerating a bit stronger just when you switch to the next hour ie after the New York open. As a result, we recently modified Nightjar so instead of updating hourly, it now updates every minute. This has resulted in much smoother execution speeds and the algo now also responds to the market far more precisely.
On top of these changes, we have also been seeing our strongest year yet in terms of FX algo execution volumes. The lack of liquidity at the start of the year in particular fuelled a lot of additional demand for algos, coupled with a widening of the spread, and in both cases using an algo makes much more sense for our sophisticated client base.
