Institutional FX Advisory Partners (IFXAP) is partnering with ITG Analytics to bring the latter’s FX TCA product to middle-tier asset managers and pension funds in Europe.
The new consultancy service will review the complete FX transaction lifecycle to ensure an efficient and transparent process, and, the firms say, seek to minimise cost and risk and maximise portfolio performance.
The consultancy covers the entire FX trade lifecycle, including use of third-party trading platforms, data delivery and connectivity, assessment of pricing and service provided by FX dealers, evaluation of front and back office process efficiency, and monitoring of execution costs using ITG’s FX TCA.
ITG has hired Ruben Costa-Santos as director and head of FX and Andre Nogueira as a director on its analytics team.
Costa-Santos most recently worked at Deutsche Bank, where he served as head of FX platforms for the Americas.
Prior to joining Deutsche Bank in 2004, Costa-Santos conducted physics research at Utrecht University and at Stony Brook University, where he received his Ph.D in mathematical physics.
Costa-Santos will oversee ITG’s foreign exchange activity across the analytics, execution and workflow technology product groups. He will be based in the New York office.
ITG’s transaction cost analysis (TCA) product for FX is now integrated into the FX Connect trading platform.
This means that institutional investors on the platform can now use FX Connect and ITG TCA for FX to measure and analyse their FX trading to help demonstrate best execution.
The TCA product combines dealer, ECN and interbank market sources to provide a analysis covering spot, forward, swap, NDF and NDS transactions.
“Accurate FX trading data is the foundation of effective FX TCA analysis. The seamless integration of a client’s data from FX Connect to ITG TCA combines our deep FX analysis capabilities with robust data from the best-in-class platform for complex foreign exchange workflows. This creates an easy to use, powerful and flexible solution for institutional traders,” says Ian Domowitz, managing director and head of analytics at ITG.
Sean Hefkey has left his position as director, foreign exchange at ITG in Canada.Sean Hefkey has left his position as director, foreign exchange at ITG in Canada.
Hefkey had been with ITG since 2010, working initially as a consultant for the firm, and then helping to develop its global FX distribution and infrastructure strategy, before joining full-time in 2011.
Prior to that he spent 12 years at CIBC where he was an executive director, focused on the firm's FX e-commerce business.
Just a little more than a year after Virtu Financial acquired KCG Holdings, sources say the firm has been in talks since April with ITG about acquiring the tech provider. Virtu, like some of its nonbank rivals, has recently focussed on building its own client-centred business. Virtu’s acquisition of KCG last year brought with it established direct to client market making relationships, and ITG is expected to broaden the client type. Virtu declines to comment on the rumoured acquisition, but as some sources point out, Virtu’s top executives – CEO Doug Cifu and CFO Joseph Molluso – each have deep backgrounds in M&A.
Virtu Financial has continued to expand its business by entering into a definitive agreement to acquire Investment Technology Group (ITG) in a cash transaction valued at $30.30 per ITG share, for a total of $1 billion. The deal has been rumoured for several months, as reported by Profit & Loss in October.
Describing what it terms as a “significant acquisition” Virtu says the deal underscores its commitment to its institutional client franchise and is a natural next step in its growth.
This week’s podcast sees Colin Lambert and Galen Stops discuss the latest lawsuit facing banks over their actions in FX markets, during which Lambert invokes the spirit of a film that he can’t remember the name of, by asking, “Could you ask me that question again Galen?”
Stops also has a series of questions relating to the Virtu-ITG tie up reported this week as our two podcasters discuss the evolution of the non-bank trading firm business model. Where do these firms expand? Lambert is fairly confident (is he ever not?) that it is not by buying other trading firms, but both men see opportunities away from trading.
They also discuss volatility in crypto markets and ask – at what stage does the institutional enthusiasm for crypto start to weaken?
This week’s podcast also highlights how Lambert giveth…and taketh away…as it is bookended by praise and ridicule for his colleague! Find out why by listening in to this week’s edition.