Refinitiv says that the adoption of execution algorithms by buy side traders on its FXall platform increased 41% year-over-year in the second quarter of 2019, following continued investment in the platform’s algo trading capabilities.
This year, FXall introduced the ability for users to slice algo tickets into several “child” orders, giving them more flexibility to work large tickets over time in order to help minimise market impact and information leakage.
It also introduced functionality allowing users to pause the execution of an algo, giving them more control over execution while they monitor market conditions and amend the algo’s execution parameters, if needed, before either resuming or canceling the algo’s execution.
Refinitiv cites these developments as reasons why the adoption of algo trading on FXall has grown so significantly in 2019.
“Attracted by the potential benefits of bank-provided execution algorithms (algos), buy side traders are increasingly folding algos into their menu of execution options alongside more traditional methods such as multi-dealer request-for-quote (RFQ) and bilateral streams of executable prices,” says the firm in a release issued today.