Cost and time to market are two of the main motivations for outsourced FX execution.
Regulation, fragmentation of liquidity and advances in electronic trading products and services have driven up the cost of in-house execution tools, which can take 12 months or more to implement compared with outsourced solutions that can be accessed much more quickly.
In addition, the availability of independent transaction cost analysis (TCA) means firms are more aware of the costs associated with executing FX, especially those who have been paying millions of dollars a year in broker fees.
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