Curtis Pfeiffer,  Chief Business Officer at Pragma
Curtis Pfeiffer, Chief Business Officer at Pragma

Exploring the benefits of outsourced algorithmic FX trading services

Like with other asset classes, FX trading has become more electronic, and this has resulted in more data across more venues that needs to be processed faster and with a high degree of accuracy. Simultaneously, there is more pressure on traders to cut costs, yet improve execution quality. Algorithmic trading is a great tool to meet these seemingly opposing objectives. 

What’s fueling growing demand for algorithmic FX trading solutions and encouraging more banks to offer these services to their clients? Like with other asset classes, FX trading has become more electronic, and this has resulted in more data across more venues that needs to be processed faster and with a high degree of accuracy. Simultaneously, there is more pressure on traders to cut costs, yet improve execution quality. Algorithmic trading is a great tool to meet these seemingly opposing objectives.  There is also a regulatory back drop. Last year’s introduction of MiFID II significantly upped the stakes for best execution because firms must now take “sufficient steps” to ensure favorable execution of client orders as opposed to “reasonable steps”. At the same time, greater attention has been placed on complying with the core principles of the FX Global Code – which has an entire section devoted to execution. What are the key reasons that banks and...continued

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