Millennium Global aims to cut FX costs for fund managers and treasurers
New FX platform MillTechFX reckons that rather than cannibalizing existing trading activity, it can generate new flows for its counterparty banks by undercutting standard exchange rates.
Currency manager Millennium Global recently launched MillTechFX, which it describes as an “independent, comparative multi-bank FX marketplace which reduces FX execution costs and operational burdens”.
The platform is the latest attempt to provide lower-cost FX services to fund managers and corporate treasurers – two groups that research suggests find it hard to access competitive rates.
Analysis of share-class hedge returns conducted by Lumint and New Change FX last year suggested that average FX trading costs were more than 10 times higher than they should be.
Meanwhile, a 2019 report co-authored by economists from the European Central Bank (ECB) and the IMF found that while large corporates were paying as little as two basis points, the least-sophisticated clients were paying more than 50bp over the competitive market mid-price for their FX trades.
We can save clients a minimum of 50% on their trading costs
MillTechFX leverages the purchasing power of Millennium Global – one of the world’s largest specialist currency managers, with approximately $600 billion in annual FX volume – to give users access to institutional-grade rates from counterparty banks, including ANZ, Bank of America, BNP Paribas, Citi, HSBC, Morgan Stanley, NatWest, Standard Chartered, State Street and UBS.