Russell Investments and white-label technology provider Integral are now offering a new end-to-end trading solution for buy-side netting, execution, and allocation of foreign exchange (FX) transactions.
Using Integral's InvestorFX technology, the new RFX Network will help institutional investors including asset managers obtain currency exchange rates that seek to minimize tracking error with respect to the fix rates published by benchmark service WM/Reuters.
The network automates execution of complex trade lists by combining internal netting within an investor’s trading portfolio with external matching amongst the larger buy-side community. Two technology solutions developed by Integral — powerful internal netting capabilities and an FX facility that matches customer interests at the midrate — will help deliver best execution as part of the service.
Users can place orders electronically into RFX Network or have Russell process them on their behalf. Fixing orders are matched with other investors, while any unmatched residual is executed by a trading algorithm that mimics the fixing process to minimize tracking error.
“RFX Network provides institutional investors with a revolutionary way to transact their benchmark orders and improve execution at fixing times. This new offering follows a long tradition of innovation from our global implementation team, providing clients and the broader institutional investor community with a comprehensive solution," says Joe Hoffman, director of equity derivatives and foreign exchange at Russell Investments.
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