Tools being developed by technology vendors and some buy-side firms could disrupt the hold that banks have as the predominant algorithmic execution providers for trading spot foreign exchange.
Demand for FX algos and electronic trading solutions has led to banks dominating the $9 trillion-per-day FX market over the years. Their grip on the market was further strengthened during the Covid-19 crisis in 2020, when the shift to remote working led to greater use of algos provided by banks that had invested heavily in them.
But an increasing number of solutions are coming to market that aim to give buy-side firms an alternative to bank-run algos.
BestEx Research, a trading platform led by AQR’s former global head of trading, Hitesh Mittal, plans…
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