Deutsche Bank’s investment in principal resting order (PRO) technology for spot FX trades has enabled clients to earn spread while trading with the bank. PRO also enables the bank to further increase its internalization rate and hence reduce market impact for the entire client franchise.
In 2022, Deutsche combined the capabilities of its three existing algos – Stealth, SmartPeg and IS – into one new strategy (Stark), which enables the use of a sophisticated proprietary alpha model and benefits from internalization with powerful order placement logic, incorporating PRO.
“We have consolidated our derivatives product offering under the same client-facing pricer,” explains Logan Campbell, global head of FX derivatives. “Quote blotter allows clients to review all pricing requests made from multi-dealer and single-dealer platforms in a single tool and re-open requests they priced in the past for further analysis or repricing. It also allows sales to have an aggregate view of the client pricing requests.”
On the post-trade side, FX trade blotter allows clients to view all trades done with Deutsche in a single place, as well as monitor the various versions of the trades, enabling clients to tailor their structures to combine vanilla, first-generation exotics, and Tarf [Target accrual redemption forward]-type products into one.
“We