Foreign eXchange Consulting Services International (FXCSI) announces FX Transaction Cost Analysis Product

Foreign eXchange Consulting Services International (FXCSI), has announced a post-trade FX Transition Cost Analysis Tool that allows users to generate their own FX transaction cost analysis (TCA) reporting. Once again, this offering underscores the heightened demand for TCA and the greater insight and transparency that is required in the market place today. Allegations of FX pricing irregularities by custody banks BNY Mellon and State Street brought attention to a corner of the FX market that has long been in the spotlight in the equities space. In addition, simple market dynamics and economics are catalysts as declining volumes, reduced margins and a changing competitive landscape put more pressure on both the buy- and sell side to identify any and all areas of cost reduction, profitability enhancement and margin improvement. As a result, firms such as ITG, TradingScreen, FXall and several others have responded with TCA offerings focused on the FX market.

“The goal of our product is to provide an easy-to-use service to support both the Buy-Side Buy-Side The buy-side is comprised of firms in the financial industry that purchase securities and are accompanied by account investment managers, pension funds, and hedge funds.The buy-side is composed of those that buy and invest large sums of securities with the intention of generating a lucrative return or have their funds managed. The Buy-Side ExplainedIn terms of Wall Street, the buy-side includes investment institutions that purchase securities, stocks, or other financial instruments with the aim The buy-side is comprised of firms in the financial industry that purchase securities and are accompanied by account investment managers, pension funds, and hedge funds.The buy-side is composed of those that buy and invest large sums of securities with the intention of generating a lucrative return or have their funds managed. The Buy-Side ExplainedIn terms of Wall Street, the buy-side includes investment institutions that purchase securities, stocks, or other financial instruments with the aim Read this Term and Sell-Side of the FX market. We have created a tool that can be used for sales, marketing, client segmentation, supplier selection, performance measurement and compliance. We, at FXCSI, do not consult on the quality of the FX pricing, as we are, in no way, exposed to the supplier-client relationship; rather the role of FXCSI is to report independently on the FX cost to benchmark, irrespective of our user’s role in the FX market”, says FXCSI VP, Product Development, Mark VanRoon.

In its release the company stated that “ FXCSI`s application allows users to create their own hierarchy complete with currency translations for the purpose of consolidated reporting at any node of interest in the enterprise. Using a proprietary method unique to the product, FXCSI is able to benchmark Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term ‘time windows’, a common practice among custodians. In addition to this, the FXCSI application ‘vectors’ benchmark measurement by transaction size and currency pair to provide a comprehensive profile of transaction cost. This is particularly helpful for custodians and real money managers alike.”

The product is scheduled to finalize alpha testing by November 30, 2012 and be beta-released on December 1, 2012.