Bloomberg introduces supplementary cost analysis tool on FXGO

By Pavithra R

Bloomberg has introduced a new tool to calculate the full cost of foreign exchange trades on FXGO, its electronic trading platform on the Bloomberg Terminal.

Accuracy in pricing is a critical goal for participants in the over-the-counter FX market that transacts more than $6T daily. Regulations often require pension funds, asset managers, and hedge funds to show they are providing the best execution for their investors. Buy-side firms also require details, so they know the total cost that affects their firm’s bottom line. FX trades are often associated with additional costs such as custodial fees and banking charges, prime broker fees, which traders may not be fully aware of until after the trade has been executed and settled.

“Trying to determine the total cost of a trade involves detailed and time-consuming mathematical calculations. We are taking that burden off the client and helping them see the total cost at the point of execution. Moving that capability into the traders’ hands ensures that they have all the information they need to consider from the beginning,” said Tod Van Name, Bloomberg’s Global Head of FX Electronic Trading.

Bloomberg’s Foreign Exchange electronic trading platform FXGO and the supplementary cost tool are available on the Bloomberg Terminal. With the new tool, traders can determine if they are achieving best execution for their clients, along with the most cost-effective trading decision for their firm. The supplementary cost analysis tool on FXGO calculates the best overall price in real-time for the trader, before execution, taking into consideration any extraneous costs as a direct consequence of the execution. Traders have the ability to specify their unique pricing inputs for different scenarios.

“We are pleased with how well the new FXGO supplementary cost tool integrates with our existing Bloomberg FX trading workflow. This electronic solution reflects the true cost of trading, which helps us provide our clients with best execution. We also found the tool easy to set up and use,” said Pictet Asset Management’s Head of Trading Innovation, Pierre-Emmanuel Charlier, and Senior Trader, Jerome Chavaillaz.

FXGO is a leading multi-bank FX trading platform, connecting more than 5,000 firms across 140 countries to more than 800 major and regional liquidity providers worldwide. Pictet Asset Management, a leading independent asset manager, is among the first Bloomberg clients to use the tool.