Trading technology provider TradingScreen has partnered with Zeno Consulting Group, a trade cost analysis consultancy, to extend its FX analytics service to asset owners.
TradingScreen launched its foreign exchange transaction cost analysis (TCA) product in May, offering users graphical representation of executions for large orders, as well as a heat map of TCA data it calls the tree map.
The relationship with Zeno will combine TradingScreen’s FX TCA with Zeno’s consulting services and expertise. The two firms aim to help clients exercise due diligence and gain greater insight and transparency into their fund managers’ and custodians’ FX transactions.
“When TradingScreen launched real-time multi-asset class transaction cost anlaysis for the buy-side, we immediately saw the potential of adapting this technology to the asset owner community,” said Steve Glass, president and CEO, Zeno Consulting Group. “By combining TradingScreen’s tools with our own analytics, data, insights and relationships, we were able to create a powerful offering that can make a real difference to asset owners. We are very excited by the potential of this partnership to build transparency and reduce transaction costs for our clients.”
“This relationship gives plan sponsors insight into their foreign exchange transaction costs at a time when they are demanding greater transparency into investment practices for FX execution quality,” added Jon Fatica, global head of analytics at TradingScreen. “Their review process should result in additional business being directed to dealers who are shown to produce best executions.”
Traditionally, FX has been a secondary concern for many asset managers, but a series of high-profile lawsuits in which asset owners and money managers have sued custodian banks for alleged overcharging has increased the spotlight on FX execution quality.
Several firms have launched FX TCA products in recent months, including New York-based agency broker and technology provider Abel Noser and agency broker ITG.