An online guide to more efficent automated FX trade execuTion for buyside firms

State Street

Mary Leung, Global Head of Client Algos
State Street Corporation
One Lincoln Street,
Boston MA

Algorithms Offered & Their Execution Styles
Names of key fx algo strategies:
FLOAT: Passive Algo
TWAP: Schedule based Algo, "Smart" execution
VWAP: Schedule based Algo, "Smart" execution
SWEEP & POST: Aggressive Algo
INTEREST MATCH: Peer-to-peer matching feature. Can be used in conjunction with other algo strategies

Also available:
Customisation available
Supported currency pairs:
The State Street algo suite supports all G-10 currency pairs and the vast majority of EM deliverable currency pairs including: CNH, CZK, HKD, ILS, MXN, PLN, SGD, THB, TRY and ZAR. State Street supports trading FX "crosses" through a triangulation model which deals on either the direct cross or synthetically through the cross legs
Features & Functionality
Use of adaptive execution technology
Use of smart order routing SOR logic
Inflight execution modification possible
Algo flow permitted to cross with other clients algo flow
Simultaneous management of multiple strategies
Algo safety controls offered
Other associated services:
Default settings and safety controls ensure efficiency and ease of use when launching a State Street algo. Robust customizations also exist including: liquidity pool selection, execution speed variation, cross spread variation, pause/amend, dynamic/preset slice size, allow shorten duration, "I would" take profit functionality, etc.

Interest Match allows for both peer-to-peer liquidity and offsetting algo flow to match within all four algo strategies.

VECTORFX, our SDP algo hub, allows live risk transfer execution within the life of the algo order. We also offer “staged algo” functionality within VECTORFX which allows for clients to run multiple algos all within a parent/child structure and amend/change strategies on the fly
TCA / Analytics Offered
Post trade transaction performance
Real time TCA
Breakdown of child executions
Independent third party TCA
Other associated services:
In house post-trade TCA provides transparency into all child orders, fills and execution timestamps. Additionally, State Street provides independent post trade 3rd party TCA analysis via BESTX at no cost to our clients. State Street also provides real-time TCA via our algo hub VECTORFX. VECTORFX displays real-time algo fills between the market bid/offer while also displaying real-time slippages against different benchmarks
Distribution Channels Available
Proprietary platform
Direct FIX/API
Via third party platforms
Liquidity Access
Access to external sources
Access to internal sources
Liquidity source customisation available
Liquidity management toolsets offered
Service Offering
Segregated execution
247 technical support
Bespoke apps
Quantitative research
Other associated services:
State Street’s algo offering segregates algo execution from the principal sales and trading desk. A segregated 24 hour support team is available to assist with any issues arising during algo execution via chat or phone. Algo subject matter experts are present in each region to help with client’s queries on the mechanics and usage of our strategies.