Thomas Vinding Co-head of e-Markets at Nordea
Thomas Vinding Co-head of e-Markets at Nordea

Algo FX Case Study

Thomas Vinding, co-head of e-Markets at Nordea discusses the question of whether Algorithmic Trading can work in abnormal FX Markets.

The very short answer to this question here in Nordea is: Yes, it does – but with some unresolved challenges. In order to shed light on this question I shall walk through the five main challenges we have faced in our efforts to realize our algo trading ambitions which we started a few years ago. These challenges touch different disciplines within the algo area which are all closely linked together and in order to succeed we must be able to cope with them all and also be prepared for the costs that are involved in creating an algorithmic trading environment. Algo Models This is all about creating models with the only purpose of being able to predict future rate movements. This is the part of the algo trading universe that banks are very unwilling to share knowledge about for obvious reasons and this, of course, also applies to us. Having said that I do not think that it is a secret to anyone that many of the models out there and in Nordea, that managed a relatively high P/L before the crisis no longer...continued

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