RBC says it has executed its first FX trades with clients via AMOS, a new daily FX trade recommendation service aimed at hedge funds and real money clients who have an active FX mandate.
Subscribed clients receive daily FX trade recommendations ahead of execution, replicating the performance of RBC’s FX positioning based trading strategy dollar for dollar. The service, which RBC says is “completely unique and proprietary”, and “exceptionally innovative” allows for potentially smarter investment decisions and a high level of transparency.
AMOS looks at speculative flows through FX markets to track and identify where markets might be heading, allowing clients to make potentially smarter investment decisions. The model that sits behind the recommendation was created entirely by the FX quants team in London, and looks at trade events through public data sources.
As such, it represents, RBC says, a fundamental shift in the FX trade recommendation model. RBC also invests its own money using the model and executes on exactly the same terms as clients, issuing very specific recommendations and with a transparent fee structure that is compliant with MiFID II regulations.
Rob Turner, FX quant trader at RBC and creator of AMOS, explains: “At RBC we believe trade recommendations should come with ‘skin in the game’. We also believe that their performance should be transparent and declared publicly – which is why we have created AMOS. We think that this approach represents the future of the bank and buy side relationship.”