FX Transparency, LLC.

FX Transparency is the leader in the FX TCA space. Founded in 2009, FXT couples its vast currency domain expertise with cutting edge technology to leverage “Big Data” to help institutional investors around the world narrow the significant variances in currency execution quality.

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Two-thirds of Pensions Neglect FX Cost - Financial Times Article

16th February 2021

...a minority of investors appear to want to know whether they are getting good value, some industry groups suggest. FX Transparency, an analytics company, said two-thirds of the 288 pension funds it recently surveyed in North America and Europe “turn a blind eye” to the true cost of currency trades, without probing for a more detailed...
Exclusive Survey Results: Two-Thirds of Pension Funds Don't Monitor FX Costs

8th February 2021

A groundbreaking survey of more than 300 asset owners revealed that 66% of those managers in North America and Europe still have no process in place to independently monitor whether they are getting fair FX rates from their global custody banks.
Buy-Side pays dearly for Aussie Swaps

1st February 2021

In March 2020, the Buy-Side got stuck paying almost 10 times more on 1 month Aussie Swaps than they paid prior to the pandemic.
Fiduciary Loophole

25th January 2021

Whether large or small by any scale, most pensions and endowments are exposed to a “fiduciary loophole” in foreign exchange as a result of using external managers and the pension’s custodian to execute currency trades.
Explaining Trading Benefits in the Peer Universe

18th January 2021

This document explains the trading benefits that happens when a manager is able to beat the mid-rate at a point in time, or an average of mid-rates over a window of time. Obviously, this can happen easily on a single trade with no timestamp measured vs. a benchmark like full-day ITAP (Interval Time Average Price), but how does it happen still when...
The Case for Mid-Market Rates in Over-the-Counter FX Transaction Cost Analysis

11th January 2021

This paper asserts that the mid-market price should be the benchmark data set against which transaction costs are measured in OTC currency markets. On average, market-making banks trade at the mid-market price. The cost in basis points between the transacted rate and the mid-market rate, multiplied by the volume of the empirical trade, provides a...
Interval Time Average Price

4th January 2021

This paper details a solution to the absence of reliable volume weighted average price (VWAP) data in over-the-counter (OTC) foreign exchange markets: The Interval Time Average Price (ITAP). The methodology can be used to evaluate trading costs in OTC foreign exchange, even in cases where time stamps may not be available in the trade history. The...
Are Asset Owners getting a fair deal on Major Currencies?

14th December 2020

Many Pension Funds and other asset owners assume that their Investment Manager is executing their FX at competitive rates, especially for Majors, but the bottom graph shows that Managers who leave FX for the Custodians to execute pay many times more.
Optimum Currency Liquidity Heatmap

7th December 2020

The Optimum Currency Liquidity Heatmap charts the hourly level of liquidity per currency. Clients use the Heatmap to efficiently plan the timing of currency deals, avoiding costly transactions at illiquid times where spreads are prohibitively wide. By executing at the most liquid times for each relevant currency, clients can significantly improve...
Netting Benefits Outweigh the Risk of Adverse FX Rate Movements

16th November 2020

By delaying the execution of certain FX trades to capture the benefits of netting, additional market and timing risks are assumed. FX Transparency argues, however, that the FX market is efficient, and hence just as likely to move in the investor’s favor over that time horizon, as it is to move against the investor, and that over the long run, the...