This post references an article originally published by the Financial Times on August 30, 2019.
MarketAxess has qualified for the S&P 500 index of biggest U.S. companies, signaling a new era in trading. “The days of young men and women barking into phones to connect buyers and sellers are slipping away. Bonds are being traded electronically and via algorithms”, writes the Financial Times. The success of MarketAxess, an electronic bond trading platform, highlights the technological change affecting markets and financial institutions. Like MarketAxess, financial institutions will benefit from the rising influence of algorithms; for example, some banks use algorithms to price and execute foreign exchange trades faster, more efficiently, and with little human involvement. However, as automation brings costs down and efficiency up, it also brings a set of challenges.
FX Rate Integrity® can help clients manage and negotiate algorithms associated with their FX trades. In foreign exchange especially, algorithms need to be closely monitored. Computer-generated algorithms are subject to error and should therefore be regularly checked. FX Rate Integrity® closely monitors corporate clients’ FX trades, helping catch rare, but probable, algorithm errors.
Read the full article on Financial Times.