Anna Reitman
Anna Reitman

Harnessing the full power of algorithmic FX trading strategies

Anna Reitman looks at why trading firms and investors should look to deploy FX algorithms as a means to make their FX execution more efficient.

Over the years, algorithmic execution strategies have advanced in technology and capabilities. And in an FX market that is progressively electronic, there’s plenty to learn about making the most of another tool in the evolution of best execution. FX has been a screen-based market for years, and the latest figures show that globally, 64% of investors use some form of electronic trading, while in the US and Europe that goes up to 74% and 79% respectively, according to Greenwich Associates. In terms of algo trading specifically, of 200 institutional FX traders recently surveyed by J.P. Morgan, 12% reported time was spent with algos versus 83% on click-to-trade. But there are also expectations that this will change over 2017, with 38% of users planning on increasing algo usage. The rise of algos, however, is a new development and has a lot to do with data, said Richard Johnson, an analyst in the Market Structure and Technology Practice at Greenwich Associates. “The advantages are that it...continued

Exclusive Content

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