Christian Bock Head of Sales, Germany at 360T Trading Networks
Christian Bock Head of Sales, Germany at 360T Trading Networks

Fair Execution and Transparency in FX

Foreign Exchange has been very much in the headlines in the last 12 months and rightly so: Too many problems and irregularities came to the surface, starting with the potential skewing of the 4pm fixing and more recently the lack of liquidity in the market after the SNB decision. Foreign Exchange has – once again – reached a point where the market will demand a better practice. This demand will be to not only access to the best price shown, but more towards the fastest and most reliable price available. Additionally it is also becoming increasingly important from a regulatory perspective to document best execution.

First Published: e-Forex Magazine 60 / Viewpoint / April, 2015

Banks as well as non-bank liquidity providers are facing changing requirements, and more importantly, price takers now have regulatory needs to prove that execution is objectively taking place in the best interest of the client. Vendors are currently seeing an increasing amount of market takers requesting reporting that give them the full scope and analytics on the quality of execution: Market takers want and need to have discussions with their LP´s on the same eye height, rightly so. It only adds to the complexity of the matter that an increasing number of clients are moving from a position of being only a market taker to also becoming market makers, serving both sides of a trade electronically, and hence also facing the same obstacles.Market needs The needs in the market today whicha re currently being discussed, beyond the obvious one of having full access to all OTC products, are:  •  Price discovery: Not only where to find the best price, but quality information on when to start...continued

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