SunGard has launched a new solution for real-time transaction cost analysis in foreign exchange (FX) trading.
The solution is designed to help traders, corporate treasurers and portfolio managers to understand the quality of their FX executions and to gain additional transparency for pricing and transaction data on a customisable data analysis toolkit, all delivered in a software-as-a-service format.
According to SunGard, the lack of a central or regulated pricing venue has led to the need for FX pricing transparency, especially around managing exposure and costs.
FX execution is gradually unbundling prices from custody arrangements and trading is moving manual to electronic methods. Meanwhile, companies are paying more attention to monitoring the costs of execution, hedging FX risk and using TCA to evaluate performances while maintaining control over pricing.
The new SunGard solution works by analysing FX transactions and showing the relative performance of the customer’s trading activity.
Howard Tai, senior analyst for Aite Group, said: “With growing adoption of electronic FX trading, including algorithmic order routing, becoming an integral part of the daily workflows of real asset managers, hedge funds, and corporate treasury departments’ end-users alike, the resulting demand for FX TCA services of all types - post-trade, pre-trade, and real-time analysis - will continue to grow healthily into the foreseeable future.”
Bob Santella, president of SunGard’s global trading business, added: “Corporations, insurance companies, pension funds and asset managers know that the FX component of their trading performance is becoming more important to track and manage as investors seek alpha.”
“As an independent provider of pricing data and analysis not tied to a particular execution venue or pricing source, SunGard is able to focus on helping organizations gain real-time performance of trading activities while providing clients with the flexibility to maintain their current broker relationships.”
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