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FinEx ETF, a London-headquartered provider of exchange-traded funds (ETFs) with a strong presence in Russia, has signed an agreement with Curex Group, a provider of foreign exchange management capabilities, to embed patented Curex FX systems and FX execution audit technologies into its line-up of currency-hedged share class ETFs.
Curex has created real-time streaming, executable FX fixing data designed to be integrated into financial market indices as an alternative to legacy FX benchmarks. Data is generated from the Curex FX electronic matching engine platform where a majority of the largest global FX dealers provide liquidity and price transparency to market participants in an anonymous, competitive “exchange-like” FX marketplace. Fix market participants can access the Curex FX platform via FX prime brokers or through a growing number of participating banks and custodians.
Curex-enabled currency valuation benchmarks are gaining the attention of ETF product sponsors, asset managers and fiduciaries globally who seek to better align their performance benchmarks with their obligations to investors for best execution.
Curex FX systems allow new real-time FX execution audit functions to be seamlessly integrated into asset manager transactional workflows, enabling asset managers to seek best execution in foreign exchange markets throughout the trading day without having to accept tracking error against an indicative FX price updated once per day. Curex systems allow market makers to hedge ETP FX exposures real-time at benchmark rates greatly improving ETP liquidity.
Simon Luhr, CEO of Finex Group, said: “We chose the Curex system as an alternative to standard FX fixing and disclosed ‘standing instructions’ for FX execution at our custodian in an effort to better fulfil our fiduciary obligation to investors for best execution. Additionally, the flexibility of the Curex system allows for the creation of better ETFs by aligning FX fixing times with the time when FX executions occur.”
Curex has partnered with the leading index provider FTSE who provides fix calculation governance and independent validation of fix price data streaming from the Curex FX marketplace to market participants.
Bill Dale, Chairman and CEO of Curex added: “We are seeing a sharp increase in the attention paid to FX valuation and execution. In time, the widespread adoption of these fixing benchmarks will spread FX volumes throughout the trading day. This should help to reduce the concentration of market activity we see around legacy fix data sample periods and should help reduce the market volatility associated with such fixings. These are positive developments for both FX markets and for ETP investors.”