SunGard Launches Real-Time FX Transaction Cost Analysis Service for Hedge Fund Managers

SunGard, a global provider of IT solutions to financial services firms, today launched an independent, real-time transaction cost analysis (TCA) solution for FX trading, saying it is aimed to help traders, corporate treasurers and portfolio managers understand the quality of their FX executions.

SunGard’s new FX TCA solution helps firms gain transparency over their FX trading by providing real-time FX pricing and transaction data on a customizable data analysis toolkit delivered in a software-as-a-service (SaaS) environment. The provider says the absence of a central pricing venue is driving its clients need for FX pricing transparency for managing exposure and costs.

Howard Tai, senior analyst, commented: “With growing adoption of electronic FX trading, including algorithmic order routing, becoming an integral part of the daily workflows of real asset managers, hedge funds, and corporate treasury departments’ end-users alike, the resulting demand for FX TCA services of all types - post-trade, pre-trade, and real-time analysis - will continue to grow healthily into the foreseeable future.”

SunGard is very developed in Southeast Asia, connecting to a number of local stock exchanges (Singapore, Malaysia, Indonesia, Thailand and Philippines) as FX trading continues to move from manual to electronic methods in the region. With Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term unbundling from custody arrangements more attention is being paid on monitoring the cost of execution, closing out positions intraday to drive real-time trading and hedging of FX risk, and utilizing TCA to evaluate performance while maintaining better control over pricing. SunGard’s FX TCA solution analyzes FX transactions and shows the relative performance of the customer’s FX trading activity.

Bob Santella, president of SunGard’s Global Trading business, said: “Corporations, insurance companies, pension funds and asset managers know that the FX component of their trading performance is becoming more important to track and manage as investors seek alpha. As an independent provider of pricing data and analysis not tied to a particular Execution Venue Execution Venue Execution venues can be defined as a regulated market but as a whole is a broad financial term that covers a wide scope of trading terminology. A market in which government and regulatory bodies supervise and exert some degree of control is known as a regulated market. Execution venues may also include an organized trading facility, systemic internalizers, market makers, multilateral trading facility, or other liquidity providers that operate under a similar capacity but generally from a third w Execution venues can be defined as a regulated market but as a whole is a broad financial term that covers a wide scope of trading terminology. A market in which government and regulatory bodies supervise and exert some degree of control is known as a regulated market. Execution venues may also include an organized trading facility, systemic internalizers, market makers, multilateral trading facility, or other liquidity providers that operate under a similar capacity but generally from a third w Read this Term or pricing source, SunGard is able to focus on helping organizations gain real-time performance of trading activities while providing clients with the flexibility to maintain their current broker relationships.”