Why FX Algo Usage Keeps on Growing
A recent survey of 149 European and US firms by Coalition Greenwich found that 40% had used algorithms for FX trades since the beginning of the Covid pandemic. With the disruption to conventional working habits, algo usage soared.
So, what explains this growth in algo popularity and what does the future have in store for algo usage in FX markets? Marek Robertson, Chief Product Officer at Siege FX, provides some answers to some frequently asked questions on this topic.
"There’s huge potential for improved algo performance as AI technology helps participants to process and analyze market data faster and faster. But already, we know that algos provide increased traceability, price benefits and overall cost-efficiencies. This supports uptake in Spot FX, but also the development of NDF and Forward strategies.
At Siege FX, we have already connected multiple FX algo providers to our services and are in the process of adding many more algos in 2023 as we continue to see demand grow across the market."
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