THOUGHT LEADERSHIP institutions have developed different technology to different degrees . But what we feel is important is a combination of the technology that we ’ re constantly investing in , along with the size of our franchise ( which is the biggest in the world ), along with a whole range of other tools that our clients can use to figure out the right time to access the market for liquidity purposes . For example , we have a pre-trade real-time and post-trade analytical TCA tool called Algo Central which offers a very clear view of how the market is shaping up and what is happening to your order . We were also one of the first banks to roll out FX algos . Its active liquidity that ’ s really important in this market – so unlike equities or futures , where everyone is using the same liquidity , in FX you ’ re using OTC liquidity . That means the quality of your liquidity is really important – and we ’ ve tried to curate the best liquidity pool we can , including developing new tools to help clients analyse the performance of their trades , and execute in any way that makes sense for them , algorithmically or otherwise .
Where do you see electronic trading developing in the FX markets over the next few years ? We have several things we ’ re excited about . We ’ re rolling out a new algo called Maker Algo which allows our algo clients to take advantage of our curated liquidity pool . We ’ ve typically kept the two separate in the past , but now that we ’ ve cleaned up the pool we can provide liquidity to everyone in the safest , most confidential , most agnostic way possible . I think pre- and post-trade analytics will continue to get better and better . I also think there have been developments in EM markets , such as NDFs – we were the first one to roll out NDF algos and these are starting to gain traction . I think access to EM products is going to electronify more . We ’ re taking a lot of this technology and we ’ re changing market structure in other asset classes , such as US treasuries , corporate bonds , interest rate swaps . We ’ re also seeing development in FX options , which is becoming more electronic - these have historically been a difficult asset class to trade in size because it ’ s not really a scale market , but we ’ re finally seeing some evolution here . We have a wide variety of existing tools for our clients to use , and we ’ re continually investing in time , talent and technology to develop new ones , so we ’ re very confident in maintaining and extending the strength of our electronic trading franchise going forwards .
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