Algos, or algo-trading, uses a computer program that follows a defined set of instructions an algorithm to place a trade at precise times or when specific conditions are met. Our suite of execution algorithm tools let customers execute FX spot trades following pre-set rules, helping to reduce transaction costs and add transparency by giving more information about the market at the time of the transaction.
Our Peg Clipper is a flexible product that allows orders be 'pegged' to the market. This means that the orders are amended continuously as the market moves to ensure they stay on the bid price if buying or the offer price if selling. Customers have the option to vary the pegging to be more or less passive and can also elect a 'no worse than' price, meaning the price they buy or sell at won't go beyond a certain level.
A universally common challenge for both customers and banks, is the ability to assess the execution performance of an algo. The volume of FX transactions a customer undertakes can vary enormously over a period of time, and from customer to customer, so understanding how well an algo has performed, until recently, has proven difficult to understand.
That is until when we joined the Tradefeedr Peer Universe. Evidencing better customer outcomes through the independent data provided by Tradefeedr is a game changer and something we should all be really proud of.
Peg Clipper and our suite of algorithmic execution tools are available via Agile Markets, our single dealer platform. To find out more, or contact the eFX Sales team: efxsales natwestmarkets. Note: Rates, currencies and certain financing products are provided by NatWest Markets Plc and its subsidiaries. For more information please visit our ring-fencing page. This article has been prepared for information purposes only, does not constitute an analysis of all potentially material issues and is subject to change at any time without prior notice.
