Cboe FX to release hosted algo service in collaboration with XTX Markets

Cboe FX Markets, a Cboe Global Markets, Inc. company has announced the launch of a hosted algorithmic execution service in collaboration with electronic liquidity provider XTX Markets.

This service will allow Cboe FX traders to access the XTX Markets Execution Algo, designed to ease the implementation shortfall, via the Cboe FX ECN. The institutional FX trading platform has received exclusive rights to use the XTX Algo in the ECN space. The hosted algo service is available for execution of actively traded pairs in the spot FX market, such as: EUR/USD; USD/JPY; GBP/USD; AUD/USD; USD/CAD; USD/CHF; USD/CNH.

Jonathan Weinberg, Head of Cboe FX, commented:

As the use of algorithms become more prevalent in the spot FX market, we couldn’t be more excited to be utilizing the expertise of a best-in-class FX market maker. 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 Global Markets

Jeremy Smart, Global Head of Distribution at XTX Markets, said:

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.

The XTX Algo can be accessed by Cboe FX participants on an anonymous or disclosed basis using the existing Cboe FX technology and legal arrangements. Investors will also be able to take advantage of the credit infrastructure of Cboe FX, which offers access to the XTX Algo and its Transaction Cost Analysis (TCA) capabilities. At first, this service will be released through the Cboe FX API in its New York-based matching engine and later expand to London, based on customer demand.

Ben Leit, Global Head of Sales, Cboe FX, added:

Cboe FX is always looking for opportunities to work with its clients to enhance execution outcomes for end investors. 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.

The hosted algo service is complementary to Cboe FX’s other services. It offers a comprehensive suite of trading services in order to meet the needs of the FX trading community. This covers aspects of how participants interact in the market such as 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 has reported strong growth so far in 2021 with reports of average daily volume (ADV) reaching $34.5 billion in the first half, earning a market share of 16.4%.

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