Buyside Looks to TCA to Improve FX Trading
The article demonstrates the need for direct FX expertise to accurately perform FX TCA. Additionally the currency market domain knowledge required to improve FX transaction costs.
Franklin Templeton highlights the significant realized performance uplift in their international asset portfolios as a result.
June 12th, 2013
Traders Express Concern over Widely Used WM/Reuters Fixing Rates
Employees have been front-running client orders and rigging WM/Reuters rates by pushing through trades before and during the 60-second windows when the benchmarks are set, said the current and former traders, who requested anonymity because the practice is controversial.
September 24th, 2012
More big investors scrutinize FX trading costs – study
A growing number of big investors are analyzing and cutting down on their foreign currency trading costs, a development that could put further pressure on the profit margins of what has been a lucrative franchise for banks.
May 2nd, 2012
Insight: Upstarts break BNY, State Street’s forex grip
BOSTON (Reuters) – Three years ago, John Galanek co-founded FX Transparency LLC to give big investors a more sophisticated view of their foreign exchange trades.
December 9th, 2011
FX Transparency Opens London Office on Growing FX TCA Demand
June 28th, 2011
Caveat Emptor No More: The Importance of Monitoring FX Trading Costs
No one likes to admit their mistakes. But today, many finance professionals are finally owning up to a whopper of an oversight: They were lax in getting the most competitive pricing and best execution processes on their foreign exchange trades.
March 1st, 2011
FX Transparency Releases Study on Standing-Instruction Currency Trading Costs
FRAMINGHAM, MA – March 1, 2011 – FX Transparency (“FXT”), an independent provider of FX transaction-cost analysis (FX TCA) and currency-execution consulting, today released a ground-breaking study of trading costs related to standing-instruction (or commonly “non-negotiated”) FX trades.
The data show a large reduction in costs in 2010 for those investors who allowed their custodian to execute currency trades on a standing-instruction basis. Overall costs dropped to 11 basis points in 2010 from an average of 30 basis points in years 2000 – 2009, which represent a reduction of 63%.
“The key question for investors is: Is this a permanent, positive change in the execution quality of these types of FX trades, or just a knee-jerk reaction to the legal events that began in the fall of 2009?” said James McGeehan, FX Transparency’s CEO. “To answer that question, investors should consistently monitor these costs moving forward. These costs are still three to four times higher than they are for negotiated trades.”
All costs were calculated against the interval time average price (ITAP), FXT’s proprietary proxy for volume weighted average price (VWAP), which is a commonly used measure in the equity trading space.
FXT made the complete study available to its clients on February 28.
February 16th, 2011
Crisis in Egypt Impacts Corporate Treasury and Finance – AFP
John Galanek, CTP, noted that the Egyptian pound (EGP) was trading at its weakest level versus the U.S. dollar since January 2005 after the market was closed for a week. “But the central bank still has plenty of cash to continue intervening and keeping the currency from making any dramatic moves, as they have done so far, and continue to do,”
February 3rd, 2011
States Widen Currency-Trade Probes – WSJ
State prosecutors are getting help from an organized group of whistle-blowers in a widening investigation into whether banks overcharged public pension funds by tens of millions of dollars for foreign-exchange transactions.
January 29th, 2011
Cuccinelli Intervenes In Suit Alleging Pension Fraud – Wash. Post
RICHMOND – Virginia Attorney Gen. Ken T. Cuccinelli II is alleging that a major New York financial institution defrauded the state’s public pension fund by regularly overcharging for foreign currency trades…