algos
Mauricio Sada-Paz, global head of e-FICC product and distribution at Barclays, discusses new algorithmic products available within the bank’s e-FX platform. Profit & Loss: Barclays’ recently added a new algo, BARX Peg, to its e-FX platform. Can you explain the genesis of this product launch? Mauricio Sada-Paz: The Barclays’ Gator execution channel was a pioneering […]
BidFX has added Standard Chartered Bank’s (SCB) full algo suite to its platform. John McGrath, chief revenue officer at BidFX, comments: “SCB are a leading liquidity provider on the BidFX platform and the expansion to add their algo suite has been very well received by the institutional buy side currently using BidFX. The evolution within […]
Portfolio Algo Execution Goldman Sachs has rolled out its new algo product suite including its NDF hybrid algo – it had long offered an NDF TWAP strategy – but of more interest was its portfolio rebalancing and gamma algos. We go into the portfolio strategy in more detail in our Closer Look feature, but it […]
Next Generation Algo Execution While there may have been some questions over the ultimate ambition BNP Paribas’ board had for its FX business, there is no doubt that execution services has been viewed favourably – and it has showed in a series of excellent product innovations and roll outs over the previous few years. This […]
Peg Algo If this had been rolled out a year ago it would have been a pretty unique offering, but that should not take away from the excellence of the development. Put simply, the Peg Algo allows a customer to do all the pre-trade work in terms of how it is going to execute the […]
Bid FX recently announced that Singapore Exchange (SGX) has bought a 20% stake in the company, with an option to acquire a controlling interest. The firm’s CEO, Jean-Philippe Male, talks to Profit & Loss about the rationale behind the deal, and some of the structural trends that he sees shaping the FX market. Profit & […]
Goldman Sach’s David Wilkins, global head of e-FX sales, and Ralf Donner, head of client FX algo execution, talk about a new algo launch that they claim offers a new way to trade FX. Profit & Loss: So tell us about the new algo that you recently made available to your clients. David Wilkins: It’s […]
This week’s podcast opens with Galen Stops gloating over Colin Lambert because CTAs – and in particular ones using trend following strategies – are (finally!) producing some positive returns. One swallow doesn’t make a summer, argues Lambert, but Stops is convinced that this is the beginning of an upswing for these hedge funds. This leads into a more serious discussion about some the challenges facing CTAs when their trend following models aren’t working. For example, do they alter their models to improve returns at the risk of diluting their potency as a diversifier within investors’ portfolios?
Goldman Sachs has launched a Basket Algo, which gives clients the ability to take numerous FX trades and then trade them as a basket.“The launch of this algo came from really recognising the pinch points of clients’ workflows and understanding what they’re trying to achieve,” David Wilkins, global head of e-FX sales at Goldman Sachs, tells Profit & Loss. “And I want to make it very clear: this is not any kind of simple trade batch uploader. Indeed, we think this is an entirely new way to trade FX.”The essential thesis behind the algo is that deeper examination of client workflows and trading activity shows that although these firms tend to execute trades on an individual basis, in many cases, they don’t need to be, and it would in fact be cheaper and more efficient for them to instead execute them as a basket.
Barclays has added a new algorithm, BARX Peg, to its e-FX trading platform.Available within Gator, the algo is designed to allow clients to minimise both the amount of spread paid and market impact by accessing Barclays’ franchise liquidity pools so that trades can be filled entirely through internalisation.The algo has five different target execution rates which provide exposure to Barclays’ liquidity through a variety of channels, including: the BARX single dealer platform (GUI), multidealer platforms and API connections. The execution rates, which represent the varying speed at which fills may occur, range from fast, which includes all 5 Barclays franchise liquidity pools, to slow, which only includes the GUI.However, Barclays notes that utilising the algorithm may reduce the certainty of execution.
