NDF algo innovation rises as internal matching builds

Banks are stepping up their algorithmic execution capabilities for restricted market currencies, applying many of the electronic matching and internalisation techniques from their spot algos.

Some banks have seen high double-digit growth in algo volumes for non-deliverable forwards (NDFs) trading, which they say has been driven by hedge funds and asset managers wanting electronic execution for emerging markets foreign exchange trading.

Mihai Nemes, head of core electronic markets, quantitative