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NEWS BITES Kepler Cheuvreux inks equity re- search distribution deal with CIBC European equity broker Kepler Cheuvreux has entered into an agreement with the capital markets unit at the Canadian Imperial Bank of Commerce (CIBC) for the distribution of equity research. CIBC will distribute Kepler Cheuvreux’s European equity research to its Canadian institutional client base, with plans to expand the relationship in the future. Trading Technologies to phase out flag- ship X_TRADER futures trading platform Derivatives trading software provider Trading Tech- nologies is to phase out its flagship futures trading platform X_TRADER beginning this year, according to its chief executive. Trading Technologies has been developing the successor trading platform, known as the TT platform, for six years, with clients due to begin migrating towards the new platform in the Q4 this year. Deutsche Börse merges Eurex busi- nesses as part of restructure Deutsche Börse Group has combined the sales and product design units for equity index and for fixed income derivatives at Eurex as part of a restructure. The newly-combined equity and index derivatives unit will be led by Eurex’s CEO, Michael Peters. Eurex’s current chief executive, Erik Müller, will head up the fixed income, funding and financing division. Aquis makes Brexit play with new Paris venue application Aquis Exchange is planning to set up a new venue in Paris in order to provide services to its European members following Brexit. The group which operates a pan-European cash equities trading MTF, has filed appli- cations with the relevant French competent authorities. The new company, Aquis Exchange SA, will open an office in Paris and will be classed as an investment firm, authorised to operate a multilateral trading facility. 8 // TheTrade // Autumn 2018 DATA TCA data on FX algo performance winning over the buy-side TradeTech FX Europe panellists point to increasing adoption of algorithms in FX markets. T ransaction cost analysis (TCA) data on the performance of algorithms in foreign ex- change (FX) is proving a hit with the buy-side. Speaking at TradeTech FX Europe in Barcelona, a panel of FX market participants agreed that the use of algorithms will likely increase. However, uptake has been slow on the buy-side despite the market moving towards an equities-style model through greater automation. “We were early participants in the algorithm space at Schroders,” said Gordon Noonan, head of FX trading at Schroders Investment Management. “I’ve seen a lot of peers over the past six months or so, who in the past have told me they would never use algorithms, beginning to ask questions.” “BestX, our TCA provider, has analytics on algo performance, so I can see and estimate with rea- sonable confidence when comparing various data points if one algo is better than another, and that wasn’t the case two or three years ago.” The panel, which consisted of buy- and sell- side market participants, as well as a technology vendor, agreed that fragmentation in FX is a cause of frustration across the industry, especially for market takers that provide algo services. “The market is moving more towards algorithms and equities style, and there are numerous events that took place where that particular segment was really going to take off,” added Giuseppe Nuti, head of rates at UBS. “But the reality now is that a lot of trades happen on a principal basis with the same counterparties that firms have been using for five or six years. There is an oversupply for small sized trades and allocation for larger sized trades, which is prob- lematic with less market maker appetite for risk.”