Pension funds and other Asset Owners and Managers often ask us, as their FX TCA provider: “Should we reduce the number of different execution and fixing times we leave up to our custodian to capture more netting?”

In this White Paper, FX Transparency provides a firm answer: “Yes, you should opt for fewer fixings and maximum netting over market moves.” In fact, we think it’s a no-brainer. By delaying the execution of certain FX trades to capture the benefits of netting, additional market and timing risks are assumed. FX Transparency argues, however, that the FX market is efficient, and hence just as likely to move in the investor’s favor over that time horizon, as it is to move against the investor, and that over the long run, the effects of market timing are a zero-sum game. The investor is left with the savings of netted trades derived from executing lower volumes in the market.

Download the full paper here.

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Bank of International Settlements leaning on buy-side to adopt FX Global Code and TCA's implicit role: