This article was paid for by a contributing third party.More Information.
Greenwich Associates Publishes New TCA Study
FX Options in the Age of Uncleared Margin Rules
Greenwich Associates have published a paper which states that buyside firms could achieve significant savings on execution costs, up to 70% on some trades, by shifting some of their trading to listed FX options. In addition, for those impacted by uncleared margin rules (UMR), funding costs could be reduced by 86%.
Crucially, their total cost analysis (TCA) research also shows that listed FX options can be more cost-efficient alternatives to bilateral trading, independent of the incoming regulations, as the electronification of FX options accelerates and liquidity responds.
Sponsor content
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net