Raidne Rolls Out FX Benchmark Audit Service
Posted by Colin Lambert. Last updated: April 27, 2022
In response to Refinitiv launching a consultation programme over the future of its WM FX Benchmark Fix, Raidne – the inventor of the Siren benchmark Fix, has extended its FX benchmark audit service to include all three FCA- regulated FX benchmarks, Siren, WM and B-Fix.
For the first time, the firm says, pension funds can perform true due diligence by fully comparing the three FX benchmarks and ascertain if their asset managers and liquidity providers are offering actual best execution.The complementary service means, the firm adds, that it is now possible to investigate whether pension funds are needlessly overpaying for FX execution and consider an optimised strategy. For example, it says, a recent audit showed savings of close to $1 million could have been achieved from switching just two trades from the Refinitiv WMR to the Raidne Siren benchmark.
“Refinitiv has made it clear that the benchmark market may require significant reform and at Raidne we agree, it is time for all diligent pension funds to undertake a thorough review,” says Jim Wyatt, co-founder, Raidne. “The landscape has now changed and it is important to check if choices made in the past are still fit for purpose today. Pension fund owners should expect best execution and can now check if they’re getting it.”
“By undertaking a thorough audit of WMR, B-Fix & Siren, based on evaluation of historic trades, vital knowledge that may underpin future choices can be assimilated,” he continues. “As a team, we are excited about how the FX Benchmark Audit introduces the potential for a fairer, more transparent landscape for the FX benchmark world and what this means for the future of the industry.”