Viraf (Willy) Reporter consultant, TABB Group
Viraf (Willy) Reporter consultant, TABB Group

Features : Algorithmic FX Execution: Evolutionary considerations for the FX Buy Side

The buy-side community has driven the need for electronic execution in every asset class they participate, a drive sustained by the desire to automate and standardize administrative processes as cross-asset players. Willy Reporter outlines how FX has become a prominent pillar toward that mandate.

First Published: e-Forex Magazine 30 / Algorithmic FX Trading / January, 2008

The buy-side community has driven the need for electronic execution in every asset class they participate, a drive sustained by the desire to automate and standardize administrative processes as cross-asset players.  FX has become a prominent pillar toward that mandate. A few years ago, processes such as algorithmic models, prevalent in equities, began to jump over the walls into other asset classes in varying degrees.  But the unique characteristics of the FX negotiation relationship require unique adjustments (by both buy- and sell-side parties) that will always differentiate these needs from those of “true” exchange-based securities such as equities.  While these automated developments have been infiltrating the FX markets with increased frequency, their benefits are debatable when viewing FX as a silo. One requirement for the further proliferation of FX algorithms has already been met; buy-side participants have been thinking “electronically” about their FX...continued

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