UBS adding ‘regulatory focused’ FX Algo’s to SDP


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

One Response

  1. [...] affecting their portfolios, and move easily through to execution, against UBS pricing, algorithmic execution, or externally via routing to SEFs or other venues, and finally through to post trade services and [...]

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