FX Outsourced Execution

FX Outsourced execution is a service that assumes the FX execution responsibilities for firms, providing either complete or partial support for all execution needs.

Implementing a robust FX framework that enables best execution can involve numerous operational hurdles. Setting up and onboarding new FX counterparties, centralising price discovery and navigating the post-execution phase (to name a few!) often have their own complications and can be a headache for the finance function.

As a result, an increasing number of firms are looking to outsource not only the onboarding of multiple FX counterparties but also the complete end-to-end FX workflow, from calculating the FX position, to execution, margining and settlement.

There is a growing recognition that outsourcing does not necessarily mean a loss of control, less transparency or reduced quality of FX activities. Instead, it can save firms’ time and resources and, when using the right partner, can actually improve governance, transparency and execution quality.

There are a number of features that forward-thinking businesses should look for in a potential outsourcing partner:

• Full transparency at each stage of the execution process
• Real-time reporting
• Independent TCA
• Complete visibility of execution costs
• The ability to demonstrate best execution