Reducing Market Impact to Improve Returns
Recent discussions with FX members working for global hedge funds have centred on reducing market footprint to improve their returns…
So we partnered with our friends at 360T to bring together a select group of trading heads to discuss. The group emphasised the importance of trading as quickly as possible, with the ability for venues to provide a clear understanding of market impact of particular trades in an immediate fashion.
The report provides some of the key takeaways and advice from the discussion, focussing 3 core areas:
1. How firms are measuring and understanding market impact and arrival prices
2. What steps can you take to mitigate and minimise market impact
3. Beyond Spot- reducing market impact for non-deliverable forwards and swaps