RBS agrees, algorithmic SEF aggregation key to servicing clients


An increasing number of savvy banks are concurring with our long-held position, and with the results of our SEF survey that Single Dealer Platforms should provide Algorithmic SEF aggregation, to enable clients to easily access fragmented liquidity for cleared products across various SEFs and other execution venues.

The latest to publically articulate this position being no less than Tim Carrington, the Global Head of FX at RBS, in an article in Risk.Net.

“We think this is the future,” says Tim Carrington, global head of foreign exchange at Royal Bank of Scotland (RBS) in London. “In a world where more trading is done electronically and bid/offer spreads are compressed, dealers will be less able to differentiate themselves on price, and will instead have to focus on providing their clients with effective, convenient access to the market. Algorithmic execution, across all asset classes, is going to be a crucial part of that proposition.”

5 Responses

  1. […] I guess that boils down to the liquidity and clearing connectivity on your SEF (see previous post here on SEF order handling rules), and this also brings us neatly full circle back to SDPs becoming SEF Aggregators. […]

  2. […] has joined a growing list of banks (including RBS, Deutsche) that are working on solutions to enable clients to route swaps orders to SEFs via their […]

  3. […] Blank At Caplin, we have long been saying that SDPs will provide SEF aggregation services (here, here, here , here  and […]

  4. […] number of leading dealers as well as research reports, support this view including RBS, UBS and Tabb Research. Caplin has also covered this extensively in a recent White paper entitled […]

  5. […] has discussed in the recent Caplin white paper SDPs in a Cleared World and other posts (here, here, here , here  and here). More on the survey […]

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