FX Knowledge Hub

Are FX Netting Benefits Worth the Market Risk?
We often get the question, “Should we reduce the number of different execution and fixing times we leave up to our custodian to capture more netting?” We believe the answer is, “Yes, you should opt for fewer fixings and maximum netting over market moves.” In fact, we think it’s a no-brainer. Download the full paper…
Interval Time Average Price (ITAP)
This paper details a solution to the absence of reliable volume weighted average price (VWAP) data in over-the-counter (OTC) foreign exchange markets. Download here.
The Case for Mid-Market Rates in Over-the-Counter FX Transaction Cost Analysis
This paper asserts that the mid-market price should be the benchmark data set against which transaction costs are measured in OTC currency markets. Download the full paper here.
10 Billion Reasons to Perform FX TCA in 2018
Think the FX Global Code prevents banks from front running your currency trades? Not so fast says Vanguard’s Andy Maack: FX Abuses Persist Even After $10 Billion in Fines, Traders Say
FCA: TCA ‘Unlikely’ To Fall Under Research / Market Participants Call For More TCA Disclosures
“The payment of third-party transaction cost analysis services is likely to be shouldered by asset managers, rather than passed on to clients, because the UK’s Financial Conduct Authority says such fees are unlikely to qualify as research costs…”   https://www.fxweek.com/foreign-exchange/trading/3451061/fca-tca-unlikely-to-fall-under-research (March 6, 2018) “Transaction cost analysis (TCA) Market participants are calling for more disclosure around who…
FX Transparency comes to Australia: expect a shake-up
The global foreign exchange monitoring and consulting company which represents asset owners and managers, FX Transparency, has appointed a representative for Asia Pacific, based in Melbourne. The firm delves into the opaque world of FX, which, for big Australian investors at least, is both huge and not-well understood. click here for full article: FX Transparency…
Citadel, Vanguard Call for End to Controversial FX Last Look
More momentum to end a deceptive market practice that does not add any value or liquidity in today’s FX market. Interesting also that shortly after this news hit the wires, Thomson Reuters signs a statement of commitment to the Global FX Code of Conduct (the Global Code), formally pledging adherence to the Code’s standards to…
FX fraud conviction damages trust further… Concerns about liquidity impact
Market headlines in recent days will influence the evolving OTC FX market structure.  The judgement against “pre-hedging” activities will have serious risk consequences for market makers and the prices clients ultimately receive.  Market sentiment is biased negatively for liquidity with continued focus on independent oversight via FX TCA. One positive ancillary benefit should be greater market…
Why US firms Must Pay Close Attention Ahead of MiFID II Implementation
Article highlights from author and MiFID II Lead at Meritsoft, Daniel Carpenter. “…CFTC Commissioner Sharon Bowen strongly endorsed U.S. adoption of MiFID II rules, American financial institutions are beginning to slowly realize that a paradigm shift is coming to the trading world in the way of investor protection. The days of ‘soft dollaring,’ the practice that…