Northern Trust to Add Algo Execution to CompleteFX


Northern Trust plans to increase the dealing capabilities of its delegated foreign exchange processing service, CompleteFX, later this year.

“Clients are showing interest in moving beyond things like third-party published rates,” said John Turney, senior vice president and head of CompleteFX at Northern Trust. “It’s matching up our capabilities to address that interest versus going and trying to do something radical. That speaks to a real advancement in terms of execution capability over traditional methods of passive order flow.”

John Turney,Northern Trust

John Turney,
Northern Trust

Some of the planned features include optional algorithmic-order execution, request for streaming quotes, and request-for-quote dealing capabilities on passive trade order flow.

“We’re going to be delivering these capabilities to clients by integrating our workflow with some of the tools that we have on the dealing desks,” he said.

Meanwhile, Northern Trust also is working on improving CompleteFX’s middle- and back-office support with better straight-through processing (STP) and exception management capabilities.

CompleteFX, which Northern Trust offers as part of its Global Funds Service business or as an à la carte service, offers clients a way to send FX order to Northern Trust, which will be executed using the financial services firm’s middle and back office under a governance structure jointly developed by the client and Northern Trust.

After the FX trade, Northern Trust also provides the settlement, notification to third-parties, transaction reporting that clients can load into their accounting systems to get an updated picture of cash resulting from their FX transactions.

The offering targets the investment managers for whom foreign exchange is something of a cash management function, Turney added. “As soon as foreign exchange is not a source of alpha, it becomes somewhat of an asymmetrical scenario for investment managers,” Turney added. “There’s certainly plenty of downside through operational errors or poor execution.”

Featured image by Dmitry Nikolaev/Dollar Photo Club

Related articles

  1. Assessing Bond Liquidity
    Daily Email Feature

    Low Touch, High Liquidity

    Janus Henderson traders use a broad spectrum of electronic tools to optimize the search for liquidity.

  2. Easy Money Tamps Down Volatility

    Increased volatility drives the buy side to take a closer look at how they are trading.

  3. Flow to electronic trading platforms increased during the first half of 2022.

  4. High-Touch Sales Traders Go Electronic

    ADV was an average $1.1 trillion for the quarter, up 14% form the prior-year period.

  5. The electronic fixed-income trading platform said it had a record number of active clients.