FX Transparency (FXT) has released FXT Analytics, a hosted application that will allow clients to create their own custom reports as well as explore new ways to reduce trading costs.
Built to help investors demonstrate FX best-execution efforts, the application allows users to select a subset of their trades based on 19 different filtering criteria, including ticket size, custodian-executed trades, and execution algorithm.
"The common thread among our clients was a need for them to build a report on a subset of trade data," says John Galanek, the firm's chief operating officer. "For the asset owner, that might mean a report on a single manager or sub advisor. For the investment manager, it often means a report for a single account or client, or perhaps comparing different execution algorithms or dealer-execution capabilities."
The depth and integrity of the information investors receive has improved, which is why FXT believes its clients can and should undertake a more extensive review of best-execution practices, Galanek points out. For instance, it's crucial to get the answers to these types of questions:
• Are custodians living up to execution arrangements?
• Which dealer has offered the best pricing for restricted currency NDF's?
• If your company's sales coverage changed at one of your key counterparties, has execution quality been impacted?
• Has the ECN or execution algorithm you added justified the brokerage and technology expenditure through improved pricing?
"All of these questions and many more can be answered with FXT Analytics," Galanek says.