Northern Trust has launched a series of foreign exchange (FX) algorithms for clients to manage their FX trading.
The FX Algo Suite users will have access to pricing through Northern Trust’s liquidity panel which aggregates pricing from liquidity providers globally.
Timothy Linehan, senior partner at Silchester International Investors, commented the ‘real power’ of the FX Algo Suite lies in Northern Trust’s liquidity panel.
“We have seen competitive quotes and narrower spreads without a corresponding increase in counterparty exposure, balance sheet risk or operating complexity for Silchester and its clients,” he explained.
Northern Trust added the suite also provides improved levels of control and transparency and minimises market impact on large orders.
Pete Cherecwich, president of Corporate and Institutional Services at Northern Trust, said clients want to be able to minimise uncertainty in FX transactions.
“By giving them the tools to manage their exposure, we have made foreign exchange dealing more efficient and transparent for our clients,” he explained.
Earlier this year, a survey of 200 institutional FX traders carried out by JP Morgan found 38% of respondents plan to increase algo usage this year.
Of those, 39% said they will look to use algos for options transactions and 30% said they will increase algo usage for swaps trading.