Over the past decade, trading execution algorithms (aka “trade algos”) have become increasingly essential for traders of all shapes and sizes. And now, the key is not just the use of algorithms in trading but choosing the best ones to use.
The first question is whether to build or buy. When so much remains unclear, buy becomes the strategic option; not only is it cheaper, but it's more effective too.
It’s ironic that I’m writing this on the day the insurance study commissioned by the industry after the MF Global and PFG blow ups was released. Ironic because if implemented in some form, it would mean more costs and more rules for futures commission merchants (FCMs) and probably their customers.
After years of dealing with low interest rates, new regulations and rebuilding client confidence, futures commission merchants are ready to break out and start doing what they do best: Executing trades and hopefully making money.
