Global asset manager Prestige Equity has launched the Prestige FX Network (PFX Network), a new end-to-end trading solution for the buy-side community for netting, execution and allocation of foreign exchange transactions.
PFX Network is designed to help institutional investors including asset managers obtain currency exchange rates that seek to minimise tracking error with respect to the rates published by WM/Reuters.
PFX Network allows buy-side firms to automate execution of complex trade lists in a novel solution that combines internal netting within an investor's trading portfolio with external matching amongst the larger buy-side community. PFX Network combines two technology solutions developed by X Open Hub – powerful internal netting capabilities and an FX facility that matches customer interests at the midrate – into a comprehensive FX execution service.
Participants can benefit from advanced netting, process automation and best execution while minimising market impact of their orders. Investors can place orders electronically into PFX Network or have Prestige 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.
Ben Logan, director, equity derivatives and foreign exchange at Prestige Equity, says: "PFX 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."
Logan added that Prestige is in a unique position to help plan sponsors and asset managers manage their fiduciary responsibilities involving executions that historically have been costly to trade and difficult to evaluate.
"Everyone is aware of the challenges our industry has faced the past year with regard to Fixing," said Gurjit Sangha, PR Manager, X Open Hub. "Combining Prestige Investment's deep understanding of FX markets with X Open Hub's award-winning technology results in a fair, transparent, and efficient way for the buy-side to execute complex trade lists and reduce Fixing-related risk. Prestige is one of the most highly regarded fiduciary managers in the world. We are excited to work with them to bring excellent service to the asset management community."
