Embedding algorithms into FX buy-side strategies

William Essex sets out to discover what types of FX algos have been proving most popular with FX buy-side trading firms and how their use is being refined.

Algorithmic trading of FX is relatively new. We know that. You can’t just plug an equity algo into an FX trade and expect it to impress you. We know that too.  You need to use an algo built specifically for FX, of which there are many. Barclays Capital’s BARX PowerFill, CitiFX Intelligent Orders, Credit Suisse’s Advanced Execution Suite (AES), Deutsche Bank’s Autobahn, BNP Paribas’ CORTEX iX would probably be up at the top of your list, along with JP Morgan’s AlgoX and others.  “We are now as sophisticated as our counterparts in equities,” says James Dalton, director, FX algorithmic execution, Citigroup. Equally sophisticated, but different. The markets are different; the tools for interpreting, trading and executing need to accommodate that difference. Also, if scale of supply can be taken to indicate scale of demand, there’s also buy-side diversity to accommodate. Long-term users of FX algos include commodity trading firms such as Campbell...continued

Exclusive Content

The full article is only available to current subscribers. Click here to sign in or subscribe by clicking here