A recent buyside survey, FX Trading: Strategic Importance of Electronification and Automation which was authored by Stephen Bruel, Senior Analyst on the Market Structure & Technology team at Coalition Greenwich, found that the trend most-mentioned by their survey respondents which will influence FX market structure this year was the continued electronification of trade execution including improvements to FX algorithms and more use being made of them. Not surprisingly the survey stated that best execution is a strategic priority for the buy side and it looked at the technologies and tools that are helping in the quest for achieving it, noting these include the use of electronic execution venues, transaction cost analysis (TCA) and algorithms. Nearly half of the responses indicated that improving execution management and analytics was a top area of investment. The overarching strategic goal is to optimise trading, and many other areas of investment will also support that goal. Upgrading trading systems (i.e., execution and order management systems (EMS, OMS)), enhancing data acquisition and improving pre-trade analytics all support the broader goal of improving execution management. This focus is vital to the success of buy-side FX trading says Bruel. For more information on this survey see: https://www.greenwich.com/market-structure-technology/fx-trading-strategic-importance-electronification-and-automation
