Deutsche Börse Units 360T and QB Combine Forex Trading Capabilities
360T adds Quantitative Brokers' FX algorithms to its trading platform, expanding execution options for institutional clients.
The integration brings QB's established algorithmic trading expertise from futures markets to the Forex space.
Key Highlights:
- Deutsche Börse's 360T integrates Quantitative Brokers' (QB) FX algorithms.
- Expands algorithmic trading options for institutional clients.
- QB's expertise moves from futures to the Spot FX market.
The Integration
Foreign exchange trading platform 360T has integrated Quantitative Brokers' (QB) FX algorithms into its trading system, enhancing algorithmic trading options for institutional clients. Both firms are subsidiaries of Deutsche Börse Group.
FX Algorithm Capabilities
Responding to client demand, QB and 360T partnered to introduce QB's execution expertise to the Spot FX market. This includes FX-optimized versions of their flagship algorithms, “Bolt” and “Strobe”.
- Strobe FX: Enhances schedule-based execution for TWAP and VWAP benchmarks.
- Bolt FX: An implementation shortfall algorithm to minimize execution costs relative to arrival price.
Executive Insights
Matt O’Hara, CEO of 360T Americas, expressed confidence that providing access to sophisticated FX algos from an independent specialist provider will significantly benefit their global client base.
Accessing the Algorithms
Market participants can now access these algorithms through 360T's infrastructure, utilizing disclosed or anonymous liquidity pools, allowing multiple counterparties to compete for execution.
QB's Expertise
Established in 2008, QB has operated in futures, U.S. Treasury, and options markets. The FX algorithms were developed in response to client demand, adapting existing technology for currency market liquidity patterns.
David Kalita, CEO of QB, noted their commitment to delivering enhanced value to clients and expanding their reach, highlighting the growing demand for such solutions in the FX market.
360T Trading Volumes
Recent data indicates a rise in trading activity for 360T. In January, the platform's total trading volume increased by nearly $100 billion, reaching $760.8 billion, with an average daily volume (ADV) of $33 billion.
In contrast, Euronext FX’s Fastmatch experienced a slight decline in trading activity, though its ADV remains higher than the previous year’s average.
Strategic Partnerships
360T has also announced a partnership with Team Malizia, a sailing team committed to climate action. Additionally, they integrated their Swaps User Network (SUN) with Lucera, expanding 360T’s reach among Lucera’s user base.
Key Takeaways
- 360T integrates QB's FX algorithms.
- Algorithms accessible via 360T's infrastructure.
- 360T sees rise in trading volume.
- Strategic partnerships enhance 360T's reach.