In choppy FX markets, algos buck expectations

Goldman, Nomura and others report increased volumes, although some clients revert to principal quotes

volatility-charts

Algorithmic execution of spot foreign exchange has increased as the spreading coronavirus has roiled markets in recent weeks – a surprise considering algo usage was widely tipped to decline in choppier trading conditions.

“We’ve seen an enormous pick-up in the use of algos in recent weeks,” says Ralf Donner, head of fixed income, currencies and commodities execution solutions at Goldman Sachs. He puts the increase at around 50%.

Clients that use FX algos take the execution risk of the

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