Interesting to see UBS preparing to release a suite of ‘regulatory focused’ FX algo’s, as part of their Single-Dealer Platform suite of offerings that would route client trades to the ‘best trade execution venue from a regulatory perspective’.
This is very much in-line with Caplin’s position as presented in our recent white paper Single-Dealer Platforms in a Cleared World, (2nd paper in the list) recent posts (here, here and here). In our view, SDPs will continue as major channel through which clients access liquidity, whether on a principal based risk transfer price, or through the use of SOR algo’s on an agency basis.
According to UBS;
the algo’s will route to trading venues that are both regulatory compliant and as efficient as possible from a trade processing cost and collateral perspective.
The addition of equity style TCA to the algo’s, providing clients with greater transparency and enhanced FX execution efficiency. FXWeek story here