The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookiesbefore using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Liquidity-hunting algos the next big thing in FX NDFs

Other players are expected to follow Goldman Sachs and BNP Paribas in introducing algos designed to source both internal and external liquidity for FX NDFs, despite limited liquidity in many non-deliverable currencies.

How to tap liquidity in non-deliverable forwards (NDFs) has been exercising the minds of FX houses this year. In February, Goldman Sachs introduced a smart algo for accessing internal and external liquidity NDFs. Four months later, BNP Paribas went live with its first NDF algo currency pairs (USD/INR and USD/KRW).

According to Ralf Donner, head of client FX algos at Goldman Sachs, there has been a consistent demand from clients – particularly in Asia – to trade NDFs in the same way as deliverable currencies.

“The most commonly traded currencies are USD/KRW and USD/INR to the 1-month date, with USD/TWD and USD/IDR also offered,” he says. “Our focus is extending the product range to provide all algo styles from TWAP [time-weighted average price], to sweep-to-fill, to the most passive execution.”

Asif-Razaq 160x186

Asif Razaq, BNP Paribas

Asif Razaq, BNP Paribas’s global head of FX algorithmic execution, says that clients can see the cost benefits of using execution algos for deliverable currencies compared to trading against a traditional risk transfer price. Unsurprisingly, therefore, they want to be able to trade non-deliverable currencies the same way.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?