FX Transaction Cost Analysis

FXT Peer Universe™ delivers the comparative data you need to compare your execution quality to that of your peers. FX Transparency uses analytical methods specific to the currency market, developed from decades of experience achieving best execution on behalf of the world’s leading asset managers, pensions and endowments, and corporate treasurers.

Rankings vs. Our Peer Universe and Cost Metrics Are Available For…
  • Total FX Trading Costs
  • Spot Trading Costs
  • FX Swap Trading Costs
  • Costs by Currency
  • Costs by Region (Emerging Markets, Majors, Dollar Block, and Scandinavia)
  • Costs by Broker/Dealer/Bank
  • Costs by External Managers and Sub-Advisors
  • Many more based on your historical trade data (Investment Team, Trader, Custodian, etc.)

Mid-market rates, Interval Time Average Price (ITAP™), and the Swap Separator™ are used to accurately benchmark the current process, even if your trade history lacks timestamps.

Swap Separator™ is our industry leading post-trade tool that allows different FX products (Spot, Swap, and Forwards) to be analyzed individually, which provides a more accurate reflection of trading costs.

Why Analyze FX Trading Costs?
  • Benchmark your FX trading costs against that of your peers to demonstrate best-execution efforts.
  • Independent TCA reports can address client and stakeholder questions about your FX trading capabilities and improve compliance and best execution processes.
  • FX has been the largest source of US bank trading profits for the past 14 years according to data from the US Treasury Department.
  • There is no regulatory body to protect institutional investors or corporate treasurers from uncompetitive currency rates.
  • Identify opportunities for cost savings and performance improvement.
  • Manage bank relationships more effectively by quantifying the commissions they earn.
  • Are your external managers trading at competitive market rates?
Our Market Data

On a daily basis, FXT stores tick data designed to match market-consensus mid rates.

  • The values for each currency pair are based on contributions from multiple sources including interbank trading platforms and voice brokers, downstream e-dealing platforms, and banks.
  • The input prices are run through a blending algorithm designed to mitigate the effects of outlier quotes.
  • FXT stores holiday calendars and historical day counts for each currency pair’s forward market. This helps ensure that all forward trades are properly valued.