Insights

Fast and Fragmented Trading. The end of prime market venues

It used to be that FX price discovery happened over the phone at what must seem, to a self-aware computer, an excruciatingly slow pace. These days it happens much faster, as the latest report from the BIS on market microstructure shows.  The report doesn’t...

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Paying too much for FX?

New Change FX conduct a good number of research pieces for asset owners and asset consultants every year. We conduct Transaction Cost Analysis (TCA) on data submitted by asset managers in order to assess the cost of the manager’s FX execution. This activity might take...

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The Cost of Poor Foreign Exchange Execution

Considerable steps are being made in cost transparency. It is however apparent that where foreign exchange (FX) is concerned, there is still a need to explain the drag on returns that comes from poor FX execution and to underline how simple it is to reduce...

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Your Guide to FX Costs

Whose (FX) Money Is It Anyway? FX costs are the last great unmanaged cost incurred by investors. Despite their significance to investors, they remain largely ignored.  This is because costs are hidden in spread and vary widely.  So we have read with great interest the...

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How to make sure your FX costs are correctly reported.

Here are the requirements for the correct reporting of Foreign Exchange transaction costs under MiFID2 and PRIIPs, and the relevant rules from the relevant legislation. Firstly, the PRIIPs standards for cost reporting are required under MiFID2.  This was clarified by...

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Understanding Your FX Costs

We have read with great interest the FX Week exposé of the market practises still common in the Foreign Exchange (FX) markets.  The problems highlighted in the article are of importance to investors because they serve to conceal costs and conflicts of interest from...

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The Impact of FX Costs on Performance

As we have learnt from FX Week today, there is a view held by some in the FX community that adding costs for clients through spread is just fine.  We disagree. Aside from being questionable from a MiFID2 perspective, adding just USD 1 per million means knocking of...

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FX TCA must be done to PRIIPs standards for MiFID compliance

In the hullabaloo of Christmas and getting our aggregated rate approved by the regulator, we missed this very important regulatory Q&A that was issued by ESMA on December 18th 2017.  Amongst the various clarifications, they deal with the following question in...

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