Special FX

摘要

The buy side's search for best-execution strategies is no longer limited to equities. As regulators have stepped up scrutiny of all aspects of fund managers' trading activity and fiduciary responsibility, the buy side has become more interested in trading on electronic foreign exchange (FX) platforms, due to the speed of execution and transparency they offer. Buy-side customers also are attracted to the electronic platforms by the lower transaction costs they offer. "There is much more focus from regulators on compliance and auditing," says Ian Battye, manager of currency management for Tacoma, Wash.-based Russell Investment Group, which handles $131 billion in assets. "The phone doesn't give you a time stamp — you ask for a quote and maybe you get it," he says. The audit trail is much easier to follow with electronic platforms.