Anna Reitman
Anna Reitman

Acting on a micro level: How FX algorithms are meeting the need for increasing control over FX order execution

FX algo take-up is going strong as adopters get comfortable taking on market risk, resulting in a shake-up of the traditional order. Anna Reitman reports.

Adoption of execution algos is accelerating rapidly for FX market players. And though it may be true that a regulatory tailwind helps, there’s also widespread industry consensus that saving money is just like making money when it comes to the bottom line.  There are basically two options when trading foreign exchange: call up a bank and leave an order, or tap into electronic channels. The latter has come into its own thanks to advantages of an automatic audit-trail at a time when proving best execution is a top priority for regulators, and being increasingly demanded by investors.  Asif Razaq, Global Head of FX Automated Client Execution in BNP Paribas’ Global Markets Unit, said that being able to reference the post-trade reporting that comes along with electronic execution is one of the major drivers of the recent surge in demand for algos.  But it’s been a slow burner to some extent. When execution algorithms first came to the fold, there was slow and cautious...continued

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