Forex - MoneyShow.com

More documents

Recommendations

Info

ALGORITHMIC FX TRADING The next wave of FX Algorithms taking order execution strategies to another level 76 | january 2010 e-FOREX
Nicholas Pratt What will be the next wave of FX algorithms? Nicholas Pratt charts the development efforts of the leading algo providers to examine how execution strategies in FX can be taken to another level. >>> It may have not been the greatest year for growth in the capital markets but there have been pockets of positive progress, not least in the FX market and particularly so in terms of algorithmic trading. “FX algorithms have certainly come on in the last few years. Electronic trading in FX has increased, through both multi-bank portals and single bank offerings, and algorithmic trading has been widely adopted, as it has in other asset classes,” says Giles Nelson, senior director of strategy and evangelism at Progress Software, a provider of application infrastructure software. There are, of course, a number of different ways that algorithmic trading is used. The classic execution strategy is where traders look to split their order into several smaller trades that are then carried out over a period of time rather than executing all at once – the idea being that any market impact is minimised. “But, of course, the FX market does not have the same market impact issues as in equities because of the excess liquidity and the OTC structure,” says Nelson. “In FX it is more about achieving a weighted price than chopping an order into small parts.” Finding liquidity Another reason for using algorithms is to find liquidity – something which has become far easier for FX traders thanks to the advancements in aggregation. Traders are now able to replace their multi-screen set-up with a single interface that shows all available prices and can also execute on an automated basis, thus freeing up traders and sales staff to focus on more quality tasks or more complex trades. Aggregation, however, is not universally popular among the banks, says Nelson. “They feel that it diminishes their relationship with the dealers. But if they want them to use their single bank offerings, they’ll have to be far more innovative and up their game because traders just want the best price.” One way for banks to reclaim the relationship with their customers is to embrace multi-asset trading. Not only will such a move attract the increasing number of buy-side firms using the same platform for all asset classes, it will also reflect the evolution of algorithmic trading. In terms of the next generation of FX algorithms much of the current interest is around the continued growth of multi-asset trading, as Nelson explains. “If you want to buy or sell an equity in dollars but are based in London, you will want to pay in sterling. This means that the best time to trade will be somewhat dependant on the exchange rate. You do not want to think you have a good price for the asset and then find the FX rate has changed. Instead you want to wrap that trade all up in one so the exchange rate does january 2010 e-FOREX | 77
Page 1:
visit us at www.e-forex.net January
Page 4 and 5:
Manfred Wiebogen Liquidity or taxat
Page 6:
NEWS Dow Jones agreement with Oanda
Page 10:
NEWS Bloomberg Tradebook launches T
Page 14:
NEWS WestLB goes Live with Eurobase
Page 17 and 18:
One of the main arguments for such
Page 19 and 20:
markets are understood as clearly a
Page 22:
LEADER Brave New World So what is r
Page 25 and 26:
• Highly liquid and accessible ma
Page 27: the average daily trade volume reac
Page 31 and 32: He says: “I think it has shown th
Page 34: FEATURES Justyn Trenner “Bilatera
Page 37 and 38: wonder, you’d agree that global b
Page 40: FEATURES above. Although addressing
Page 43 and 44: Workflow I-TEX ® Intra-Group Tradi
Page 45 and 46: Technology upgrades CME Group inves
Page 48: FEATURES >>> crisis. “The value p
Page 51 and 52: floating-rate payments on the 3-mon
Page 54 and 55: FEATURES Navigating the communicati
Page 56: FEATURES centre providers such as E
Page 60 and 61: FEATURES Tracking new developments
Page 62: FEATURES Emmanuel Nusimovici “Att
Page 65 and 66: eFX No Restrictions Stand out from
Page 67 and 68: “We invested quite a bit with our
Page 69 and 70: Following its acquisition by ICAP,
Page 72: FEATURES >>> Jim Foster “Occasion
Page 75 and 76: complicated to integrate, if you ha
Page 77: and potential liquidations. FX firm
Page 82: ALGORITHMIC FX TRADING underpinned
Page 86: ALGORITHMIC FX TRADING In terms of
Page 90 and 91: e-FOREX : INTERVIEW RBS leading the
Page 92 and 93: e-FOREX : INTERVIEW revenue that wa
Page 94 and 95: FOCUS DMA - an increasingly attract
Page 96: FOCUS that the next stage of develo
Page 100 and 101: FOCUS Nick Pittarelli "We passively
Page 102 and 103: FOCUS Benefits of DMA Most of the p
Page 104 and 105: RETAIL e-FX PROVIDER Achieving more
Page 106: RETAIL e-FX PROVIDER Peter Kelleher
Page 110: RETAIL e-FX PROVIDER “At FX Bridg
Page 114 and 115: RETAIL e-FX PROVIDER Taking steps t
Page 116 and 117: RETAIL e-FX PROVIDER recovery proce
Page 118 and 119: SPONSORED STATEMENT RETAIL e-FX PRO
Page 120 and 121: RETAIL e-FX PROVIDER CFH WebTrader:
Page 122: RETAIL e-FX PROVIDER CFH Markets al
Page 125 and 126: sites are independent, supervised b
Page 128:
RETAIL e-FX CLIENT Hayel Abu-Hamdan
Page 131 and 132:
Trader’s Platform or the fixing o
Page 133 and 134:
Regional Retail FX Perspectives cus
Page 136 and 137:
RETAIL e-FX CLIENT e-Forex talks wi
Page 138 and 139:
RETAIL e-FX CLIENT GO4X was introdu
Page 140 and 141:
RETAIL e-FX CLIENT DeltaStock helpi
Page 142:
RETAIL e-FX CLIENT accounts via one
Page 145 and 146:
est trading platforms in the world
Page 147 and 148:
Together with Tradency and via its
Page 149 and 150:
What retail traders want The key fe
Page 152 and 153:
RETAIL e-FX CLIENT in the retail fo
Page 154:
RETAIL e-FX CLIENT Patrick Meier
Page 157 and 158:
FXCBS Aggregation system and Bridge
Page 159 and 160:
What services and solutions does FX
Page 161 and 162:
most of the mayhem. Because of unpr
Page 164:
TRADERTALK weighting also smooths o
show all

Forex - MoneyShow.com

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?