FXSpotStream to Add FX Algos and Allocation Service

The demand for FX Algos is slowly increasing among institutions.

FXSpotStream LLC announced on Thursday that it will add several FX Algo strategies, along with FX Allocation services, which will be offered via its API from the second quarter of this year.

The platform will add over 70 different Algos and more than 200 parameters offered by the liquidity providers and can be accessed by the FXSpotStream client base. The FX Allocations will allow its clients on a pre and post-trade basis to send and allocate orders from multiple accounts at the same time.

Speaking to Finance Magnates, FXSpotStream Co-founder and CEO, Alan Schwarz clarified that though the upcoming services are a ‘natural extension’ of its existing services, there is a growing demand for them from its ‘banks and clients’.

“We are an API business and today, the largest by supported volume when looking at the streaming fully disclosed offerings. We, of course, have a GUI, and later this year will have Algos and Allocations available on our GUI,” Schwarz said.

Growing Demand for FX Algos

When compared to equities, the demand for FX Algos is yet to receive mass adoption. However, demand for these services is growing.

“While the volume is still not what we see in Equities, as an example, the amount of volume that is transacted using FX Algos has and will continue to increase for the foreseeable future,” Schwarz added. He elaborated that such services are gaining popularity among asset managers and hedge funds.

Mentioning the advantage of FXSpotStream’s FX Algos, the CEO details that it will be a ‘part of a multibank service support for FX Algos over an API’, something that is not yet seen in the market.

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“We are not selecting which of our liquidity provider Algos we will support. We will support all of their available FX Algos.”

Breaching the $11 Trillion Mark

Founded as a bank-owned consortium, FXSpotStream provides a multibank FX aggregation service for spot FX trading, with extended services for the derivatives market as well.

The platform reported excellent volumes throughout 2020, resulting from the market volatility and its continued business expansion. Trading volume for the year crossed $11 trillion, with the ADV increasing 18.52 percent to $42.648 billion.

“For the third year in a row we grew at the fastest rate of all FX services in the industry,” Schwarz said. “Our growth is the result of adding new clients; growing business from our existing clients; a continual expansion of the products we offer, and the underlying functionality.”

Indeed, the number of clients on the platform jumped by 19.64 percent when compared with the previous year.

“We expect to see continued volatility in the market in 2021,” he added. “We also have another very large project we are progressing.”

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