Abel Noser Solutions, a sister company to Abel/Noser, today announced the launch of its foreign exchange transaction cost analysis offering (FX TCA). Abel Noser Solutions’ customers will be able to measure the FX trading performance of their custodians, brokers and managers, and view absolute and relative peer cost comparisons based on industry standard metrics.
“Buy-side firms have historically struggled to support best execution in the currency space due to the fragmented nature of FX liquidity and a lack of centralized price reporting. With recent currency-trading litigation against custodial banks and the current OTC regulatory environment, savvy traders and investors are starting to demand more reliable and transparent methods to benchmark executions and costs,” said James Noser, president of Abel Noser Solutions. “Our clients are increasingly performing TCA on their FX trading. They are often finding costs that dwarf those found in equity trading. FX TCA helps them quantify their total costs associated with cross-border trades, and provides tools to select the best strategy going forward, like changing the mix of standing order instruction and negotiated trades.”
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Through the Abel Noser Solutions FX TCA offering, traders will be able to identify outlier trades, break out costs by manager, broker, trade type, region and further analyze spot, forwards and swap trades. Independent assessments provided by Abel Noser Solutions also allow customers to compare their trade logistics to reports received by interested counterparties.
“With over 25 years of TCA experience in equities and fixed income, we are in an ideal position to offer institutional clients a complete view of their FX trading performance. Thus far, we have leveraged relationships with over 500 equity TCA clients, who are beginning to understand the true cost of their custodial connection and scrutinize every commission and execution cost that they have,” explains William Conlin, president and CEO of Abel/Noser. “It would not surprise me if we saw a drop in FX costs as clients start to measure them more closely. That was the experience we observed when equity trading costs were first measured in the mid-1980s.”