Choose your execution: Traders tout benefits of algos for ETFs
In a space dominated by RFQ protocols, trading desks are exploring hybrid strategies for executing ETF orders.
The popularity of algorithmic trading is fueling a growing desire among European dealing desks to use the strategy to execute trades of exchange-traded funds (ETFs). The main method of executing ETF trades in Europe is through the request-for-quote (RFQ) protocol, which is used by traders to gather electronic quotes from counterparties on specific instruments or strategies.
But in the interests of best execution, some firms are seeking out alternatives to the RFQ process. Algorithms and increased
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