THETRADETECHFX DAILY
MEAG consistently observed robust liquidity through its network of long-standing bilateral relationships, particularly in G10 currencies.“ While algorithmic execution delivered strong results even during highly volatile phases, our focus often remained on minimising market and timing risk while also achieving high fill ratios, leading us to frequently opt for risk transfer pricing,” he adds.“ In such extremely volatile and potentially directional market conditions, we tend to prefer execution without Last Look and with access to strong internal, nonrecycled liquidity.” Beinert also reflects on algo performance. Higher volatility allowed algorithms to capture spreads more effectively, but the trade-off was greater market risk if positions moved against them. Internalisation, too, became a focal point, with ongoing industry debate about what constitutes“ true” internalisation. In general, liquidity since the inauguration has been relatively unchanged and FX spreads have been fairly consistent, adds Toby Baker, head of foreign exchange trading at T. Rowe Price.“ There have been bouts of higher volatility which, if you are trading derivatives, can work in your favour. There are always opportunities to be found even in volatile markets.” He adds that during this period, algos were used slightly less than normal as again, the preference is to keep voice contacts going and use working orders and phone trades instead.
“ Our focus often remained on minimising market and timing risk while also achieving high fill ratios, leading us to frequently opt for risk transfer pricing.”-
Christian Beinert, foreign exchange trader at MEAG
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