Wall Street banks struggling with recently defanged currency-trading desks have found a surprising ally: high-frequency traders.
Bloomberg News reports that banks are directly connecting to price feeds from Global Trading Systems and Virtu Financial to help complete their clients’ currency orders, according to the chief executive officers of both computerized-trading companies.
By working with the HFT firms, banks benefit from narrower gaps between buying and selling prices without having to reveal their trades in the wider market or pay fees to use external venues.
'They’ve been partnering with us and other HFTs', Ari Rubenstein, co-founder and CEO of GTS, said in a phone interview. 'There’s a natural fit here: the banks own the relationships, and we own the cutting-edge technology and the sophisticated algorithms'.
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