Nordea uses algorithms for FX trading

Thomas Vinding

The Nordic bank began taking real positions based on the first models built in-house at the beginning of this year.

First Published by e-Forex News: October, 2008

<h4>Thomas Vinding</h4> The Nordic bank began taking real positions based on the first models built in-house at the beginning of this year. The models are based on a series of data sets, including tick data. It is expected that the coming, more advanced models will encapsulate the bank&rsquo;s proprietary trading data. This includes customer transactions, real-time data on the bank&rsquo;s own trades and those lost to competitors. Real-time input on strike levels on options traded with customers and data from the bank&rsquo;s limit order book will also be used. The models are developed by quants in close cooperation with the trading desk and with the algo infrastructure developers all located in Copenhagen. - We believe that we have a competitive edge in the Nordic currencies as well as the Baltic and the Polish currencies since we possess more information than the average algorithmic trader, says Thomas Vinding, co-head of e-Markets at Nordea.