[ I N - D E P T H
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F O R E I G N
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A L G O R I T H M S ]
Simplicity has remained a key
part of Cortex following the
revamp, and rather than building
several different algorithms, BNP
Paribas focused on enhancing its
existing Chameleon and Viper algo
strategies. While clients found
value in the self-piloting and
adaptive algorithms BNP Parib-
as had developed, the bank says
many wanted to be more involved
in the algo execution process. To
meet this demand, BNP Paribas
has introduced what it is referring
to as the ‘fourth generation’ of FX
algorithms: interactive algos.
The interactive algorithms pro-
vide a view of the data it is process-
ing and reacting to from the Insight
LIVE market data hub, allowing
clients to consider various options
for order execution. But, rather
than running the algo on autopilot,
as has traditionally been the case,
traders are handed the controls to
turn off autopilot and navigate the
execution path, based on real-time
analytics delivered via ALiX.
stealthy algo trading strategies when the Cortex plat-
form first went live.
“Execution algorithms have grown in use in the FX
space, whereas in the equities space, they’ve existed
for a very long time,” Razaq adds. “FX algorithms were
more difficult to build due to lack of transparent data
and fragmented liquidity. As we saw the electronifica-
tion of the FX market take place, we started to develop
models to gather market intelligence and were able to
build algos that adapt in real-time.
“It was a greenfield project in terms of having a blank
slate, and this is where I really wanted to utilise my ex-
pertise in artificial intelligence. Can I build something
using basic AI techniques that will give us an edge, to
improve on what the market is doing with the first and
second generation algos? We also wanted to simplify
the algo journey, because clients think of algos and see
complexity. Simplicity was key. When BNP Paribas
launched its algo platform, one of the key objectives I
set myself was not to overcomplicate the algo selection
process for the client.”
“ALiX is designed to be your
personal trading assistant, where
it will monitor multiple live market
data feeds within our real-time
analytics portal.”
ASIF RAZAQ, BNP PARIBAS
The four pillars
The FX algo trading team at BNP
Paribas focused on four pillars
when building Cortex LIVE; user
experience, market analytics,
integration and intelligence. For
user experience and integration,
market participants have a mul-
titude of single dealer platforms
to choose from, all of which are
competing aggressively for client
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