UK-based New Change FX announced on Tuesday that it was selected by Metzler Capital Markets, a supplier of currency management services in Germany and part of Metzler Bank, as a partner to analyse transaction costs.
New Change FX calculates an independent live reference mid-rate for all currency pairs. This allows market users to examine the full cost of their forex execution. By joining forces, Metzler will be able to offer more transparency to its customers in regard to its execution rates in its currency management services.
Commenting on the partnership, Simon Wesch, Senior Currency Manager at Metzler Capital Markets said: “By working with New Change FX, we are able to measure transaction costs against an independent benchmark. This justifies the trust our customers place in us in currency management. We not only apply best price execution, we also prove it.”
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According to the statement from New Change FX, traders can compare the execution quality across different liquidity providers with its analysis. Moreover, the firm believes that the segregation of trading and cost measurement is the key to reliable analysis.
Andrew Woolmer, the CEO of New Change FX, added: “In our approach, we use independent, regulated data against which to measure transaction costs. The confidentiality of client data is the core value of this business model. We focus on data protection and independence – and are completely in agreement with Metzler Bank on this.”
New Change FX aims to address issues with forex liquidity
Established in 2006, New Change FX identified that there were some industry-wide problems with forex liquidity. Previously, traders had to rely completely on their broker to give them the correct execution costs. That’s why, since 2013, the firm began aggregating forex data to give an independent analysis of the forex execution rates. Now the company sells that data to banks, brokers, corporations, investment managers, asset owners, and to other TCA providers.