Russell Investments’ RFX Network has expanded its reach by establishing itself as a certified end point on the Charles River Network Service, thus continuing its drive to offer an alternative to the WMR Benchmark Fix.
Russell teamed with Integral Development Corp in 2015 to launch RFX Network, which it says is an end-to-end trading solution for the buy-side community that features executable streaming prices, advanced netting, client-to-client matching and allocation of FX transactions.
“It is designed to help institutional investors including asset managers minimise currency exchange tracking error,” Russell says. “This addresses industry concerns about the London fix and also allows institutional investors to trade at non-fixing times.”
The Charles River Network says it offers connectivity via the FIX messaging protocol to over 600 global liquidity venues.
“Connecting to the secure, reliable Charles River Network is an important milestone for RFX Network,” says Joseph Hoffman, director, global head of currency for the investment services group at Russell Investments. “We’re very pleased that Charles River Network participants can now access what we believe to be the next step in the evolution of FX trading for the investment community.”
RFX Network allows buy-side firms to automate execution of complex trade lists with a solution that combines internal netting within an investor’s trading portfolio with external matching amongst the larger buy-side community. It combines three technology solutions – internal netting capabilities, an FX facility that matches customer interests at the midrate, and trading algorithms – into an FX execution service.
The firm says participants can benefit from advanced netting, process automation and best execution while minimising market impact of their orders.
Investors can place orders electronically into RFX Network or have Russell Investments’ 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 minimise tracking error.