Pragma introduces algorithmic triangulation for cross pair FX trading
The multi-asset quantitative trading technology provider, Pragma, has enhanced Pragma360’s algorithmic suite to support triangulation of cross pair trading, meaning that clients can achieve better execution when trading illiquid currency pairs.
The new functionality, created by Pragma in response to client demand, allows traders to trade cross-pairs through triangulation in order to achieve better prices. By splitting the trade across more liquid currency pairs before triangulating the liquidity through a common base currency, it allows the benefits of algorithmic trading to extend to less liquid cross pairs.
According to leading market intelligence providers, Greenwich Associates, real-money investors and corporate treasuries that commonly need to trade these illiquid pairs overwhelmingly value best execution and price above other factors when it comes to choosing a dealer. The tool’s new functionality allows banks to maximise the benefits of algorithmic trading, taking advantage of Pragma360’s high performance, low-latency, customisable execution algorithms, comprehensive TCA reporting and real-time monitoring.
David Mechner, CEO of Pragma Securities, comments: “Our clients want to extend the benefits of algorithmic trading to illiquid cross pairs. Thus, offering triangulation was a natural evolution for the company.
Triangulation of more liquid pairs results in a higher quality execution because of narrow spreads and greater liquidity.
As a result, banks leveraging Pragma360 provide a better trading experience to their clients.”