How can freight transport and logistics firms navigate rising FX challenges?
Amongst the growing number of challenges facing freight transport and logistics firms is the threat of adverse currency movements.
27 January 2022
Best execution is one of the most commonly used terms in foreign exchange (FX) and across other financial markets. If your firm has an FX exposure, there is a high probability that you have come across ‘ best execution'.
Despite all the controversy and regulatory intervention relating to FX best execution in recent years, many still don’t understand its full definition and how to achieve it.
Best execution is a regulatory requirement that investment services firms, executing orders on behalf of customers, take all sufficient steps to obtain the best possible results for their clients.
There are many factors to take into consideration in the quest for FX best execution:
Best execution is covered by various market principles and regulation originating from the FCA Conducts of Business Sourcebook and Principles of Business, the FX Global Code of Conduct and, most notably, MiFID II.
Combined, they stipulate that investment firms should:
Achieving best execution is not easy and in our last blog on the hidden costs of FX we highlighted some obstacles to achieving best execution. The biggest obstacle is the operational complexity involved with managing multiple FX counterparty relationships. Many investment firms may also suffer from a lack of transparency over costs.
There are a number of ways we believe you could overcome these obstacles, and technology is key:
Transaction Cost Analysis
End to end execution services
MillTechFX by Millennium Global is the FinTech affiliate of Millennium Global Investments, one of the largest specialist currency managers globally.
Our multi-bank marketplace helps asset managers and corporates to significantly reduce both FX costs and operational burden associated with FX execution and rolling hedging requirements.
We provide access to a transparent marketplace for comparative FX execution from up to 10+ counterparty banks, while harnessing a unique and significant pricing efficiency for our clients.
Get in touch to find out how we can help you achieve best execution: contact us.