Greenwich Associates’ report is based on interviews with 1,584 “top-tier, buy-side foreign-exchange users around the world”, of whom 56% represent financial firms and 42% represent corporates (2% “other”) showed that:
- algorithmic trading of FX continues to grow amongst buyside firms
- algo-enabled hedge funds traded 53% of their FX volume using algorithms in 2013, and the overall figure for institutional algo usage is projected to grow by 64% year-on-year to end-2014
- in a move partly attributable to their increasing use of FX algos, hedge funds have moved significant proportions of their volume to single-dealer platforms.
- regulatory complexity is another significant driver for change.