K&KGC has completed another year of FX algo trading benchmark research and we can now verify that most FX traders are still contemplating using them. Our latest 2019 iteration of the Buy-side Perspectives report is now very detailed and the results is a must have for anyone evaluating whether to start using FX trading algorithms.

 
One buy side mentioned that on measuring algo vs. voice trading performance, trading algorithms generally offer better results. At certain points of time and specific trade sizes, voice trades will perform better. Both trading methods are needed in the foreign exchange trader's tool-box. 

It is interesting to see how the buy side’s preferences for alternative trading technologies, which are being evaluated for future use, is transforming. 
The buy side also discussed the viability for buy-side-to-buy-side trading for Spot and Derivatives and what benchmarks would be used for these. The need is stronger for Forwards than Spot. 


FX Forwards are still cheaper to trade compared to Futures but the buy side foresee more Futures trading in 2 years time. 

Similar to other asset class trading desks, order automation is high up on the agenda and most trading desks attending the ATF Foreign Exchange debates in London anticipate having automation in place by 2020. 
There are also an increasing number of buy side who are starting to trade FX with various electronic market makers. 


To learn more about the topics discussed, please join us at the next ATF Foreign Exchange meeting in the Autumn. Based on demand from our buy-side community in Germany, we will host our first FX and cross asset derivatives Alpha Trader Forum debate in Frankfurt in November.

We look forward to seeing you in the autumn in either Frankfurt or London.
 

 

 

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akarppi@buysideintel.com     +44 (0)203 4113996

 

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