One of the biggest issues with FX algorithms since their inception is how to view accurate traded volume data, particularly considering the lack of order book depth data that has been available to date, says Asif Razaq, Global Head of FX Automated Client Execution at BNP Paribas. He adds that in a bid to solve […]
The Bank for International Settlements recently released a working paper on the foreign exchange market, part of which explores the expansion of algorithmic trading. In particular, the paper charts the rise in algo use on EBS to 2022, by which time …
The uniquely fragmented nature of FX liquidity has arguably been a key driver behind the growth in adoption of FX algos, particularly among buyside firms. Leading FX providers are also aware of the impact good liquidity management can have on execution outcomes…
Despite the growing role of algos in the FX industry, recent research by Coalition Greenwich found that only 12% of corporate treasury departments are currently using them.
FX algo adoption among the buyside has never been higher, with recent findings from a Finance Hive Global Pulse survey indicating that some 92% of firms now say they use algos for at least some of their trades.
One of the central themes in the BIS report on FX execution algorithms (EAs) and market functioning was the notion of an ‘execution trilemma’, a concept created to help FX algo users better understand that every execution strategy entails a trade-off.
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.
Around seven years ago, when FXAlgoNews was first published, there were only a handful of leading FX algo providers in the market and the growth in demand for strategies and related tools was only starting to…
The use of FX execution algos to increase transparency was one of the original drivers behind early algo adoption. Yet since the release last year of the updated FX Global Code, the importance of …
Since the surge in FX algo use during the early days of the pandemic, the increased appetite for FX algo execution has continued seemingly unabated.
