In choppy FX markets, algos buck expectations
Goldman, Nomura and others report increased volumes, although some clients revert to principal quotes
Algorithmic execution of spot foreign exchange has increased as the spreading coronavirus has roiled markets in recent weeks – a surprise considering algo usage was widely tipped to decline in choppier trading conditions.
“We’ve seen an enormous pick-up in the use of algos in recent weeks,” says Ralf Donner, head of fixed income, currencies and commodities execution solutions at Goldman Sachs. He puts the increase at around 50%.
Clients that use FX algos take the execution risk of the
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