Regulatory Exposure: Gauntlet for FX TCA has been thrown

The quest for financial market transparency continues, link below. Regulatory authorities globally, led by Europe (ESMA) & UK (FCA), have mandated oversight on transaction costs as a core requirement for all fiduciaries in a proper best execution framework. The mandate is cross asset class, inclusive of Over The Counter foreign exchange market trades.

Is your firm exposed? Crucial questions to ask:

• Do you have UK or European investment operations?
• Do you have UK or European clients invested in your funds via separate accounts or commingled vehicles?
• Do you invest in UK or European securities?

If you answered yes to one or more of the questions, your firm may have direct exposure to one if not all the upcoming financial regulations, (MiFID II, MiFIR, PRIIPs, etc.). Link included to a global law firm’s interpretation of MiFID II’s best execution requirements including currencies.

FX Transparency has been the leading independent global provider of FX TCA to more than 150 institutional investors on four continents for over seven years. This may be an opportune time to review/enhance existing firm transaction cost analysis policies currently in place in light of the imminent new rules.

Contact us at +1 508-283-5850 in the America’s or at +44 (0) 20 7816 5935 in Europe and Asia.

http://www.investmentweek.co.uk/investment-week/news/2473068/fca-proposes-complete-transparency-for-asset-managers-on-pension-scheme-transaction-costs

https://www.dlapiper.com/~/media/Files/Insights/Publications/2015/12/MiFID_II_Best_Execution_Requirements.pdf