An FX overlay manager uses best execution to increase customer value

Recent changes in the FX market structure have led to challenges for many buyside market participants. These changes also offer opportunities that need to be seized. Examples of this are the use of trading platforms including intelligent trading algorithms, which enable, among other things, the development of new sources of liquidity, as well as the manifold possibilities of transaction cost analysis and the appropriate choice of hedging instruments. When selecting an FX Overlay Manager, clients should not only refer to the past but also focus on how changes are handled in order to be optimally positioned for the future. This is precisely where the strengths of independent investment boutiques such as 7orca Asset Management AG lie. In this article, Holger Bang, CFA, who is Head of Currency Overlay at the firm outlines how it is addressing these market developments and utilising new toolsets to increase efficiencies as part of its best execution process.