Forward momentum: the new world of NDF trading
NDF landscape is changing as trading volumes drive electronification and algo execution – but challenges remain
When the foreign exchange desk at BNP Paribas received a $100 million order for a US dollar/Korean won non-deliverable forward (NDF) trade recently, it turned to what would have once been inconceivable for that over-the-counter market: an algorithm that completed 80% of the trade by looking at the bank’s offsetting flows.
It shows the progress that has been made in the NDF market in recent years
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