Jonathan Butterfield EVP Marketing and Communication at CLS Bank International
Jonathan Butterfield EVP Marketing and Communication at CLS Bank International

CLS - delivering operational efficiencies for Algorithmic FX traders

Jonathan Butterfield looks at the opportunities that Algorithmic FX trading present to CLS and how CLS deliver operational efficiencies to Algorithmic traders.

First Published: e-Forex Magazine 26 / Algorithmic FX Trading / January, 2007

The last year has seen total participation in CLS grow by 26%, with the number of fund accounts growing by 60%. CLS Bank is now settling on average over 250,000 instructions each day, with a gross value in excess of US $ 2.7 trillion. This is good progress, but in the light of recent data on fund industry participation, including algorithmic trading, in the FX market, there remains work to be done.Recent research from Greenwich Associates identifies that FX trading volumes rose by 14% in 2005. This growth appears to be driven by the fund industry. Between 2004 and 2005, average foreign exchange trading volumes among fund managers and pension funds increased by almost 48%. Hedge fund FX trading volume was second only to banks.The rise in institutional and pension fund-related FX volumes can, in the main, be attributed to two key factors. First, that fund managers now view FX as an asset class in its own right, with the corollary being more active foreign exchange trading. This, in some part has been caused...continued

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