Increasing the level of automation on the trading desk has secured its place near the very top of the buy side’s collective to do list. The CV-19 pandemic has triggered unanticipated and severe FX volatility and has shone a light on some of the inefficiencies on the trading desk, especially with the migration of the trading desk from the office to the home.
The lack of clarity on the right path towards unlocking the numerous benefits that automation can provide led to this digital roundtable series, where we hosted interactive discussions with senior buy side representatives from the biggest AUM firms globally to put down the building blocks of a clear and concise roadmap for the effective deployment of automated trading tools for FX.
This report summarises the key themes and takeaways of these conversations with our North American members. You can read the findings from our conversation with European heads of trading here.
Data shows that in the recent volatile markets where spreads widened, firms who has implemented rules-based executions for non-Spot FX products that were pegged to a price midpoint fared better than those firms who executed via point-and-click RFS. Crucial to this is that the midpoint price was driven by a data source that could accurately reflect where the market was trading, even during the stressed market conditions.
To read more, download the report to view the full findings.