Cboe FX Launches Hosted Algo with XTX Markets
Posted by Colin Lambert. Last updated: September 14, 2021
Cboe FX has announced the launch of a hosted algorithmic execution service in collaboration with XTX Markets. The new service will enable Cboe FX participants to access the XTX Markets Execution Algo, which is designed to alleviate implementation shortfall, via the Cboe FX ECN.
Significantly perhaps for the platform, Cboe FX has also been granted exclusive rights over use of the XTX Algo in the anonymous ECN space.
“As the use of algorithms become more prevalent in the spot FX market, we couldn’t be more excited to be utilising the expertise of a best-in-class FX market make,” says Jonathan Weinberg, head of Cboe FX. “This service will offer greater choice and transparency to Cboe FX’s participants in how they access liquidity as they seek to improve their execution quality, demonstrate best execution and drive automation within their FX operations.”
Jeremy Smart, global head of distribution at XTX Markets, adds, “We are excited to be working with Cboe FX to enhance the distribution of our FX Algo product, which furthers our ability to reduce the FX community’s trading cost when patiently executing larger orders. We look forward to helping the platform’s participants benefit from our scale and market-making expertise in FX. “
Cboe FX participants can access the XTX Algo on an anonymous or disclosed basis via the Cboe FX ECN using their existing Cboe FX technology and legal arrangements. They will also be able to utilise the credit infrastructure of Cboe FX, which offers access to the XTX Algo and its Transaction Cost Analysis (TCA) capabilities. This service will initially be available through the Cboe FX API in its New York-based matching engine, with a planned expansion to London, based on customer demand.
“Cboe FX is always looking for opportunities to work with its clients to enhance execution outcomes for end investors,” says Ben Leit, global head of sales, Cboe FX. “XTX Markets was a natural collaborator for us as we sought to launch an algo hosting offering and lower the barriers for entry for clients wishing to adopt advanced agency solutions in the FX spot market.”