Northern Trust Pushes for More Hands-On Execution with New FX Algo Suite

The FX algo suite will enable users to control how their trades are executed, and access a select liquidity panel.

Northern Trust, a wealth and asset manager, has strengthened its foreign exchange (FX) offering with the implementation of a new set of client execution algorithms. The newly introduced algos will enable clients to better manage their FX exposure and trading capabilities through improved levels of flexibility and control, as well as Northern Trust’s liquidity panel.

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The FX Algo Suite is Northern Trust’s latest addition to a diverse set of FX services that already includes the group’s end-to-end FX dealing service CompleteFX, portfolio hedging capabilities, share class hedging, automated income sweeps and custody trade tagging, and voice trading through some of the most actively utilized dealing desks in Chicago, London, and Singapore.

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Take Control

The launch of Northern Trust’s FX Algo Suite is part of a broader industry push to empower market participants with greater levels of transparency and control over their respective trades. The ability of users to not only control how their orders are placed but also how their trades are executed represents one of the more versatile and hands-on approaches in the industry. This includes access to Northern Trust’s liquidity panel, which effectively aggregates pricing from a list of leading liquidity providers across the globe.

In particular, the use of Northern Trust’s new custom execution algos will help clients mitigate the overall market impact on large orders, utilizing a systematic, rules-based process in a bid to offset their FX risk. The new algo suite also marks the group’s latest efforts to cede more control in the execution process to market participants, which it recognizes as an important measure in achieving the best levels of transparency.

Pete Cherecwich

Pete Cherecwich, President of Corporate & Institutional Services at Northern Trust, commented: “Clients want to be able to minimize uncertainty in their foreign exchange transactions, and Northern Trust is committed to helping them do that. By giving them the tools to manage their exposure, we have made foreign exchange dealing more efficient and transparent for our clients.”

“The real power of FX Algo Suite lies in Northern Trust’s liquidity panel. We have seen competitive quotes and narrower spreads without a corresponding increase in counterparty exposure, balance sheet risk or operating complexity for Silchester and its clients,” explained Timothy Linehan, Senior Partner, Silchester International Investors.

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