Execution algorithms. Where innovation is driving demand in FX

William Essex explores which FX buy side sectors are now becoming the biggest users of execution algorithms and in what ways the focus on transaction cost analysis in FX is further stimulating the use of algorithms as a key component of best-execution toolsets.

Everything is back to normal in the FX market – but it’s a new normal. All around us, corporates are back to funding their cross-border operations; trading desks are back to taking orders and transacting; retail investors are back to piling in behind every new trend. We’ve had ten-plus years of upheaval – not just the crash but also the impact of technology on what we do; plus all that wider IT-accelerated social, political and economic change; lately the worst weather for centuries; all capped off with a European political crisis that mimics 1914 rather too accurately – and yet, behind it all, the FX market is back to moving as it has always moved. Which is significant. Seven years ago, Credit Suisse launched AES FX. Take-up was sustained, as was competition to dominate the new space. Evangelos Maniatopoulos, global head of AES FX product and trading, Credit Suisse, says: “When Credit Suisse launched AES FX seven years ago, it represented a new approach to executing FX...continued

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