Algo wheels are the application to trading of the idea of randomised controlled trials, which originally comes from the natural sciences. When you have some new innovation in the healthcare space, for example, you have to make sure
that a new treatment actually works and improves outcomes for patients.
Alistair Cree, Product Manager at FlexTrade, tackles ten questions about Algo Wheels in FX trading.
Algo wheels have become a popular technology in equities trading, but now there are signs that algo wheels are expanding beyond equities into multiple asset classes such as futures.
A FINRA working paper has raised concerns about broker order routing to affiliated alternative trading systems (ATSs), shedding light on order routing decisions and potential conflicts that can impact execution quality. Can a higher level of scrutiny by regulators be on the way?