Insights
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...
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...
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...
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...
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...
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...
Ever wondered what’s wrong with the FX business?
This article (see link below), by Eva Szalay, editor of FX Week, neatly summarises the key issue with the FX business. Stashing fees in spread should be a source of shame to asset managers, but it continues, despite new MiFID2 requirements. Charging investors for...
Simplifying FX TCA
According to the JP Morgan e-Trading Trends for 2018 survey, over 50% of the bank's institutional trading clients (a sample of 400 participants) main concerns for 2018 are to do with Price Transparency or Regulatory Reporting. The issue of achieving regulatory...
RTS 28 Report? Sorted.
There's a lot of moaning about MiFID2, naturally, but we don't think anyone should be complaining when it comes to reporting for FX. NCFX can automate the RTS 28 report for asset managers cheaply and easily either through an SFTP process, or via a simple file upload...
Why you need an Independent FX Benchmark.
NCFX have achieved official recognition of their rates by the FCA under ESMA rules. The question for FX users is how does an independent FX benchmark help, and why use the NCFX products? FX is a material issue. FX execution is a requirement for almost everyone in...