75% of buy side to use algos in a couple of years, participants say
Best execution requirements and liquidity conditions will drive adoption, according to a survey by Greenwich Associates
The use of execution algorithms on the buy side has been inching higher in recent years, especially since the eruption of the benchmark-rigging scandal in foreign exchange, which saw several liquidity takers look for ways to gain more control over execution.
Overall, a 2015 study by financial consultancy firm Greenwich Associates estimates a third of buy-side FX volumes are conducted through algorithms, with hedge funds particularly active in the adoption process. According to the research, US
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