Credit Suisse’s Advanced Execution Services (AES) division offers algorithms for FX traders via AES FX.
Credit Suisse offers the following strategies for its FX algorithms: TWAP, which spreads orders evenly over time; Reserve, which drip feeds orders into the market in an iceberg style using a series of limit orders; Float, which is designed to follow the bid, mid or offer; Guerilla and Sniper, which minimise signalling risk by actively taking liquidity and by never queuing on the market.
Float can also be combined with Guerilla and Sniper to enable clients to capture more of the spread.
Credit Suisse’s FX algorithms allow clients to use their own order management system to trade on multiple venues simultaneously.
By using Credit Suisse’s algorithms and AES Pathfinder smart order routing technology, clients can employ a broad range of strategies to access the best available pricing, whether that is in the interbank market, on electronic crossing networks or the bank’s own Crossfinder network.
AES FX consolidates the best bids and offers from all venues to build a virtual book that offers tighter spreads than individual venues, which the bank claims can result in sizeable execution cost savings for traders of major currencies.
According to Credit Suisse, total anonymity of client orders is guaranteed, with only the AES team being able to see client trades.
Customisation and future development
Clients can customise their algorithms with the AES team to create a trading style that best suits their individual requirements.