FX Knowledge Hub

Cost of Hedging Rises with the Pandemic
“Never waste a crisis”. The banks certainly haven’t, yet at the expense of asset owner & asset manager clients. Risk transfer, albeit small, is expensive in volatile times. Spreads in 1 month Aussie Swaps increase by 500 to 1000% since the onset of the CORVID 19 outbreak.How are you managing FX execution costs during volatile…
Bank of International Settlements leaning on buy-side to adopt FX Global Code and TCA's implicit role:
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…