Swiss bank UBS using algorithmic trading in foreign exchange business to help clients find better deals when prices are volatile

Briefing

Swiss bank UBS using algorithmic trading in foreign exchange business to help clients find better deals when prices are volatile

May 17, 2019

Briefing

  • ORCA-Direct – UBS utilizing optimal routing control algorithm, ORCA-Direct, to help foreign exchange trading clients find and order best deals during volatile markets
  • Deployment Status – First rolled out in May 2018 to limited clients, ORCA-Direct enabled foreign exchange business to double and made UBS become fastest growing algorithm-based broker in 2018
  • How It Works – Combines machine learning analytics and synchronized order placement, allowing users to see best platforms, execution sequence, probability of trading and market impact of orders in real-time
  • Advantages – Include more efficient trading and reduced costs both for clients and UBS
  • Volatile Markets – Foreign exchange markets affected by socio-political uncertainty and volatility leading to flash crashes and shutdowns in many algorithmic trading systems
  • HR Impact – UBS has cut back on trading teams relying more on automation, retrained 350 back office employees in automation software, and asked investment banking personnel to think of ideas to digitize company

Accelerator

Market Disruption

Business Model and Practices

Business Model
and Practices

Sector

Financial Services, Information Technology

Function

Customer Experience and Service, Human Resources, Research and Development, Sales and Distribution Channels

Organization

UBS

Source

Original Publication Date

May 14, 2019

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