Deutsche Bank intends to expand its flagship algorithm for passive spot foreign exchange orders to its swaps business, giving clients the ability to earn spread on the instruments for the first time.
Launched in January 2021, Deutsche Bank’s principal resting order (Pro) algorithm enabled clients to leave pegged or resting spot limit orders bilaterally with the bank. The orders are matched against either the bank’s principal desk or, more usually, its wider client franchise.
It means clients that don’t want to leak information by leaving orders on electronic venues have a bilateral alternative that allows them to earn some of the spread instead of having to cross it and pay a risk transfer price. The orders are believed to account for around 10% of Deutsche Bank’s overall spot FX volumes – a figure the bank hopes to double by this time next year.
Deutsche Bank is hoping for similar results in its…
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