Virtu Financial Launches New FX Algo Execution Product

The product is part of Virtu’s Transaction Cost Analytics offering.

Virtu Financial, Inc. announced earlier today in New York that it has launched a new analytics product dedicated to foreign exchange (forex) algorithmic execution, as part of the continued expansion of its global Transaction Cost Analytics (TCA) offering.

The provider of global multi-asset financial services and products has launched the new FX algorithmic execution product to meet client demand. 

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The new addition to the company’s FX TCA offering merges data from three sources – FX benchmark data from Virtu’s market-making business, the company’s broker-neutral market impact model FX Agency Cost Estimator (ACE) and direct connections to bank algo providers.

Virtu Product Allows Comparing of Algo Providers

By using these three data sources, clients are able to increase their understanding of algo performance, Virtu said in its statement today. Clients of the company can also compare algo providers and strategies.

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Commenting on the new product, Kevin O’Connor, head of Virtu’s broker-neutral Analytics and Workflow Technology division said in a statement: “Virtu is the leading equity TCA provider to the buy-side, serving 75% of the world’s largest asset managers and this extensive experience – combined with the expertise from Virtu’s multi-asset market making operations – uniquely positions us to support our clients’ analysis of algorithmic execution across asset classes.

“FX algo execution is increasingly relevant for a large portion of our clients. Our new FX TCA functionality is designed to enable both comparative metrics between providers and strategies, as well as to help clients determine which execution strategies to use given their risk appetite and market conditions.”

The multi-asset service and product provider offers its TCA products via its broker-neutral Workflow Technology and Analytics division. This unit supplies solutions, which are used by both buy-side and sell-side firms.

Today’s announcement follows on from Virtu revealing its financial results of the first quarter of 2020. As Finance Magnates reported, total revenues increased by 176.6% to $1,004.1 million for this quarter.

This strong increase was driven by heightened levels of volatility, bid-ask spreads and trading volumes across global markets and asset classes due to the COVID-19 pandemic. This is compared to $363.0 million for the same period in 2019.

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