HSBC Launches New FX NDF Algo Suite with Asian Currencies

HSBC’s FX Alternative Execution Services has extended its non-deliverable forwards (NDF) algorithm suite by launching a new offering called NDFlex.

The suit will add pairs of five Asian currencies initially: Indonesian rupiah, Indian rupees, Korean won, Philippine peso, and Taiwan dollar against the US dollar. The new product is similar to the bank’s algorithm offering for G10 currencies.

According to a Profit&Loss report, using the new algo suite, implementation shortfall, Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term seeking, TWAP, VWAP, get done, and liquidity plus strategies can all be deployed. The access liquidity from the EBS platform as well as the bank’s own liquidity pools.

Initially, though the algorithm suite will be available on BidFX and Bloomberg, the bank has plans to add it to more platforms in Q4 2020.

“We have been working on developing the NDF algos for about six months with our clients,” Vivek Sarohia, HSBC’s new global head of FX alternative execution services said. “We have seen, like our peers, a significant uptick in demand for algos and this gave us the validation to expand our offering into emerging markets, which is a strong suit of HSBC.”

He also revealed that the algos have been live for testing since July and received positive feedback from its clients.

“Our clients wanted a product that was as flexible as possible in terms of how they select their strategies and liquidity sources, as well as what tenors they can trade. Emerging market liquidity provision is a specialty of HSBC and NDFlex is a key development as we evolve our service in these markets,” he added.

Increasing Demand for NDFs

With the increasing demand for NDFs, many major global players are now adding the instruments for their clients. Only a couple of weeks earlier, Finance Magnates reported on Barclays’ addition of similar NDF algorithms on the BARX electronic Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term.

HSBC is also considering entering the Latin American markets, especially Brazil, with similar NDF offerings.