Insights
Big Data shines a light on FX hedging costs and their contribution to a huge fund underperformance – Executive Summary
Executive Summary A new study of share class hedge returns conducted by Lumint Corporation and New Change FX (NCFX) reveals significant underperformance of hedged share classes. FX hedging could be costing the UK investment industry up to $5 billion per year. This...
Share Class FX Hedging Research Paper
Lumint Corporation and New Change FX (NCFX) have conducted analysis of the relative performance of hedged and unhedged share classes of funds in order to quantify the effect of the foreign exchange (FX) element of their investments. To read the full report paper...
The Unit Cost of Volatility
One of the challenges market participants face when analysing their FX transaction costs is how to compare results across different currency pairs and volatility regimes. A given spread for 1 million EURUSD might be considered very tight under certain conditions, but...
The Unit Cost of Volatility at the 4pm Fix
The 4pm Fix conducted in London is a seemingly immovable feature of the Foreign Exchange (FX) markets. The Fix is still widely used by corporations and asset managers, despite the controversy over the wisdom of its use. To provide a fresh look at the issue, NCFX has...
Why Market Impact Matters
A common misconception of FX market liquidity is that it is plentiful, and so market impact does not matter. A dive down into the BIS triennial survey data shows that FX markets are far less liquid than people think, and market impact is a driver of transaction costs...
New Change FX launches new suite of Foreign Exchange APIs
New Change FX (NCFX) is proud to announce the launch of a new suite of Foreign Exchange APIs that provide customers with access to NCFX TCA Calculations and Models as well as access to regulated NCFX FX Benchmark data. Within the API suite we are pleased to add new...
New Change FX and Lumint announce collaboration to offer a new definitive set of Share Class Hedging analytics and services.
Enterprise Data Management (EDM) for FX Tick Data
In the current Financial Market landscape, data can be a major determinant of whether businesses succeed or fail. The transformative potential of big data is widely recognised. In this endeavour, companies are realizing that big data is not simply a single technology...
A crying need for Benchmarked Execution
A popular misconception of the FX market is that FX is highly competitive and transparent. An excellent article in the FT dispels[1]this myth with some eye-watering numbers. Quoting an upcoming research report to be published by the ECB on discriminatory pricing of...
After a review Coalface Capital chooses NCFX
Declan McEvoy, CEO, Coalface Capital says: “We conducted a review of possible providers of “true-mid” pricing for our automated trading system and decided on NCFX. Their methodologies and accuracy are the best in the market” “That Coalface Capital has chosen the New...