State Street Global Markets have launched TruCross/FXSM which is available exclusively to the institutional buy-side community. TruCross/FX is a FX spot benchmark execution product that facilitates the matching of institutional trades to create efficiencies in electronic FX benchmark trading by reducing information leakage and volatility around benchmark pricing times. TruCross/FX replaces the present model of bilateral buy-side to sell-side benchmark order submission process with a series of automated daily sessions at which buy and sell orders for certain currency pairs are matched and priced with reference to the selected benchmark price. TruCross/FX will be available initially only through FX Connect, State Street’s multi-bank electronic trading system. Institutional investors can submit orders to a session ahead of a fixing with no pre-trade information leakage to the market, their trading counterparties or State Street’s principal foreign exchange trading desk. Once the benchmark orders are matched, only the unmatched amounts are executed in the market during the period in which the benchmark is calculated utilizing a proprietary algorithm. TruCross/FX will deliver the WM/Reuters mid-rate benchmark rate net of fully disclosed rate adjustments.
“TruCross/FX is a timely solution to investors’ concerns around benchmark trading,” said Mark Snyder, executive vice president and head of State Street Global Markets Sales & Trading and Research business.