In recent years, an increasing number of large liquidity providers, including JP Morgan and XTX Markets, have begun “white labelling” their foreign exchange spot execution algorithms. Under such arrangements, a regional bank will rebadge the larger LP’s algo as its own, and both sides will share the fee charged to the end-client.
The regional bank can thus bring algorithmic trading strategies to its clients quickly and cheaply without having to build them up by itself. Credit Agricole, NatWest
