There is somewhat of a correlation between the the development of new open platforms and the willingness of brokers in the retail FX sector to adopt broker-neutral solutions over recent times, and the advancements set in place by large firms in the institutional FX sector.
Today, Credit Suisse has reinforced this dynamic by connecting to REDIplus, which is a broker-neutral institutional platform developed by REDI Global Technologies which was owned outright by Goldman Sachs until July 2013, when it was sold to a consortium made up of a series of Tier 1 banks.
Setting Sights On Algo Trading
According to Credit Suisse, the division of the company which is connecting to the REDIplus platform is its Advanced Execution Services (AES) operations, which concentrates its efforts on algorithmic trading.
Bearing in mind the recent European regulatory and governmental stance being taken toward algorithmic and high-frequency trading among institutional firms, and the forthcoming public meeting being held by the United States Commodity Futures Trading Commission (CFTC) regarding how the jurisdiction is to treat algorithmic trading as well as automated execution within trading desks in North America, investment in furthering the reach of such practice comes at an interesting time for Credit Suisse’s dedicated department.
“Credit Suisse’s AES brings tremendous global reach and cross-asset capabilities to our platform,” stated Rishi Nangalia, CEO of REDI Global Technologies, with regard to its connection to the financial institution. “REDI continues to leverage the strength of our partners in order to deliver innovative solutions across the trade lifecycle and bring added value to our customers,” he concluded.
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REDI Global Technologies estimates that with access to 97 percent of the world’s equities and derivatives electronic exchanges through registered broker-dealers, the REDIPlus EMS provides a single platform for seamless order routing of equities, futures and options across the Americas, Europe and Asia.
“REDI offers Credit Suisse a new way to serve investors,” commented Pankil Patel, co-head of Credit Suisse’s AES U.S. in a commercial statement today.
“It’s a new way to offer the wide variety of algorithmic tactics that allow our clients to reduce their market impact, improve their performance versus benchmarks and focus on the bigger picture,” he added.
Broker-neutrality has become just as much of a phenomenon among platform providers as the willingness of banks to support new institutional platforms, as exemplified not only by last year’s sale of a majority interest in REDI Global Technologies by Goldman Sachs to such esteemed names as BoA Merrill Lynch, Barclays, BNP Paribas, Citadel and Lightyear Capital, but also by the accrual of support by a series of banks for Tradition’s ParFX platform last year which completed founder testing with some of the very same institutions behind it, subsequently going live in April 2013.