CBOE FX Markets Introduces An Algorithmic Execution Service

CBOE FX Markets Introduces An Algorithmic Execution Service

A prominent trading solutions provider and forex market operator, CBOE FX Markets, announced on Tuesday that it has officially launched an algorithmic execution service together with an electronic liquidity provider, XTX Markets.

Based on the press release, the new offering will allow the users on the CBOE FX platform to access the Execution Algorithm of XTX Markets called XTX Algo.

Going into details, it was revealed that interested participants would be able to access the service through the CBOE FX ECN, which was granted exclusive rights for the usage of XTX Algo services. The pairs that are available for trading on the XTX Algo service include USD/CAD, EUR/USD, USD/CNH, USD/CHF, AUD/USD, GBP/USD, and USD/JPY.

The Global Head of Distribution of the XTX Markets, Jeremy Smart, while commenting on the recent development, said, “We are more than excited to partner with CBOE FX in enhancing the distribution of XTX FX Algo services which helps us to further achieve our mission of reducing the trading cost bore by the FX community while executing large orders. We are eagerly looking forward to helping the participants of the platform to profit from our scale and market-making expertise in the Forex market.”

Using the XTX Algo

The participants in CBOE FX can also make use of the Transaction Cost Analysis (TCA) capabilities of the XTX Algo, which is initially available on the CBOE API. Though it is available initially on the matching engine that’s based in New York, we can further expand it to London if required by our customer demand.

The thoughts of the Head of CBOE FX, Jonathan Weinberg, on the announcement include, “As the usage of Algo Services is becoming prevalent in the FX Spot Market, we can’t be more excited to partner with the best FX Market Maker. We believe this service will offer a wide choice and greater transparency to the participants of CBOE FX in their liquidity access as they are looking to improve the quality of their executions and drive automation within the Forex operations.”

It was announced earlier this month that CBOE FX Markets has an ADV (Average Daily Volume) of $28.9 billion in August, which is significantly lower than the previous month – July 2021. The overall FX volume reached $636 billion in August 2021, which is 11% lower than the figure recorded in July 2021.