Industry SectorsFinancial ServicesPragma launches cross pair FX trading triangulation tool

Pragma launches cross pair FX trading triangulation tool

Pragma, a multi-asset quantitative trading technology provider, has enhanced Pragma360’s algorithmic suite to support triangulation of cross pair foreign-exchange (FX) trading.

The new tool, created in response to client demand, allows traders to trade cross-pairs through triangulation to achieve better prices.

By splitting the FX trade across more liquid currency pairs then triangulating the liquidity through a common base currency, it allows the benefits of algorithmic trading to extend to less liquid cross pairs.

According to Greenwich Associates, real-money investors and corporate treasuries that commonly need to trade these illiquid pairs overwhelmingly value the best execution and price above other factors when it comes to choosing a dealer.

Pragma360’s new enhancement allows banks to maximise the benefits of algorithmic trading, taking advantage of Pragma360’s high performance, low-latency, customisable execution algorithms, comprehensive transaction cost analysis (TCA) reporting and real-time monitoring, according to the company.

David Mechner, Pragma Securities CEO, says: “Our clients want to extend the benefits of algorithmic trading to illiquid cross pairs. Thus, offering triangulation was a natural evolution for Pragma.

“Triangulation of more liquid pairs results in a higher quality execution because of narrow spreads and greater liquidity,” he adds.

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