Buy-side Perspectives Issue 14 - Page 12

Foreign exchange trading – onwards, upwards and forwards! At our 9 th Alpha Trader Forum (ATF) Foreign Exchange on 4 th October 2018, the buy side had an opportunity to discuss the recent positive developments around the availability of new types of FX data services for improved decision making. The evolution of improved data goes in line with the developments of the skillsets on the FX trading desk towards more data scientists. The buy side also had the opportunity to review the consolidated K&KGC benchmark results showing the most successful foreign exchange trading algorithm providers used by the buy side today. This buy side lead initiative sets the starting point for a richer taxonomy within algorithmic foreign exchange trading in the industry. This 12 is something that is needed with the rapidly increasing sophistication of foreign exchange trading algorithms. Execution management systems (EMS) and transaction cost analysis (TCA) are also maturing technology areas within foreign exchange. With limited buy-side budgets, it is mainly a choice between multi-asset or best-of-breed. Even if the buy side would identify their ideal solution, their legacy order management system (OMS) may limit their choices. There still remains additional challenges such as receiving the required time stamps for accurate TCA analysis if one is trading auto FX with custodians. The buy side also had the opportunity to discuss the Winter 2018