Cboe FX to launch hosted algo service with XTX Markets

Jonathan Weinberg, Head of Cboe FX.

Cboe FX Markets, a Cboe Global Markets company has launched a hosted algo service with electronic liquidity provider XTX Markets.

This service will enable Cboe FX participants to access the XTX Markets Execution Algo (‘XTX Algo’), which is designed to alleviate implementation shortfall, via the Cboe FX ECN.

Cboe FX has been granted exclusive rights over use of the XTX Algo in the anonymous ECN space. The service is available for execution of the most actively traded pairs in the spot FX market, including EUR/USD; USD/JPY; GBP/USD; AUD/USD; USD/CAD; USD/CHF; USD/CNH.

“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 maker, said Jonathan Weinberg, Head of Cboe FX.

He added, “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.”

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 leverage the credit infrastructure of Cboe FX, which offers easy 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.

Ben Leit, Global Head of Sales, Cboe FX, said, “TX 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.”

This service is complementary to Cboe FX’s other services allowing it to offer a comprehensive suite of trading services to meet the diverse needs of the FX trading community, covering all aspects of how participants interact in the market.

These include a firm order book (Cboe FX Central), sweepable order book with curated firm and non-firm liquidity (ECN), and full amount trading which provides participants with a solution for larger order risk transference with low market impact (Full Amount).

Cboe FX had a strong first half, reporting average daily volume (ADV) traded of $34.5 billion, representing a market share of 16.4%.

©Markets Media Europe 2021

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