FX Transparency - FX Knowledge Hub Article

January 17th, 2012

FX Trading Costs Could Face Huge Increase

by John Galanek

If the financial transaction tax is imposed on currency trades in Europe, three things will happen: FX Desks will move to the US and Asia, liquidity will be reduced, and bid/ask spreads will widen.

The unique thing about FX is that they will also have to apply the tax to corporate hedgers, ultimately penalizing multinational corporations for mitigating currency risk.

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Posted in FX Transaction Cost Analysis |

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FX Transparency is an independent provider of foreign exchange transaction cost analysis (FX TCA) and currency execution consulting. The firm's mission is to quantify and reduce currency-trading costs for all institutional buy-side market participants around the globe. FX Transparency was founded in April 2009 and is headquartered in Framingham, Massachusetts and also has an office in London, UK. For more information about FX Transparency's TCA services or to see how your company's execution costs compare to others using the FXT Peer Universe™ program, please contact us at +1 508-283-5850 in the America's or at +44 (0) 20 7816 5935 in Europe and Asia.