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Building New FX Strategies

Building New FX Strategies

Giovanni Pillitteri, global head of foreign exchange trading at GTS Securities, talks to Profit & Loss deputy editor, Galen Stops, about how his firm takes a holistic view of financial markets in order to build effective FX strategies.

In recent years there has been a well documented trend of non-bank market makers expanding out of their traditional core equities business to trade FX. GTS Securities is one such firm, with Pillitteri explaining how its equities expertise can help inform and improve its FX strategies.

“We look at the various asset classes in a very holistic way and there are multiple strategies that we have that have correlations between FX and equities,” he says.

Pillitteri continues: “Those are strategies that other market participants are not necessarily looking at or able to express because maybe they are working for a firm where the departments are siloed. We’re able to basically go and look at strategies that are very much at the forefront and the inter-linkage between the equities market and the FX market and through that we express those axes or bids and offers and with that we provide more efficiency to the market.”

He says that while it’s “never an easy exercise” to transfer trading tools and techniques from one asset classes to another, they key for GTS Securities is to leverage the technological agility that it has.

Such technological agility is often seen as one of the advantages that non-bank market makers have over banks, but Pillitteri stresses that the banks “are still offering a great service in terms of liquidity provision” and that ultimately the FX market benefits by having both types of firms active in the market because it improves liquidity and offers a more diverse type of liquidity.

Watch the full interview here: