The CitiFX Intelligent Orders platform offers a market leading suite of algorithmic execution strategies designed to efficiently access FX Spot market liquidity with a goal to optimize your execution performance. Use this guide to gain an understanding of our FX Algo platform and each strategy to help identify the execution strategy that best fits your requirements.
The strategies are calibrated to take into account the day to day shifts in liquidity between currency pairs and trading venues. Transparent post trade reporting provides clients with a detailed audit trail and the ability to evaluate transaction costs across their portfolio of FX trades.
CitiFX Cross (CFX) is a proprietary low latency Spot FX Matching Engine that allows users of our FX Algo platform (external clients and internal trading businesses) and Citi’s principal FX E-Trading business to match their offsetting execution and hedging interest against one another. By design it provides our clients with greater access to Citi’s diverse and extensive internal liquidity if they choose to ‘Include Citi Liquidity’ when using our Algo platform – do not select this option if you prefer to exclude Citi liquidity. CFX employs a fair price improvement methodology to share price improvement between aggressive and passive orders. The price improvement is shared only when the matching happens within the range of a reference bid and offer derived from market data from multiple venues. Adding CFX to our Algo, eTrading and voice trading businesses enables us to increase internalization of our spot FX flows which may reduce the market impact of our customers' electronic deal flow.
Additional Risk Information
Foreign exchange contracts are subject to enhanced risks.
Foreign currencies represent the legal tender of one or more foreign nations and normally are not linked to any intrinsically valuable commodity (such as precious metals). Foreign currency exchange rates may be volatile and subject to intermittent market disruptions or distortions due to numerous factors specific to each foreign country, including among others government regulation and intervention, lack of liquidity and the types of entities participating in the market. The currencies of emerging economies may be subject to more frequent and larger central bank interventions than the currencies of developed economies and are also more likely to be affected by sudden changes in monetary or exchange rate policies, or by the actions of significant market participants. Disruptions may also occur as a result of non-governmental events, such as actions taken by, or force majeure events affecting, foreign exchange dealers, relevant exchanges or price sources. Foreign currency exchange rates may be especially volatile during times of financial turmoil, as capital can flow very quickly out of regions that are perceived to be impacted disproportionately by such turmoil. Any of the foregoing events, among others, may adversely affect the transaction economics of a foreign exchange transaction. You should be aware of these risks and should understand their effect on each prospective foreign exchange transaction.
