Russell Investments’ recently launched RFX Network successfully matches first buy-side trades at the WM/Reuters London 4 p.m. fix
New end-to-end foreign exchange (FX) trading solution offers superior netting for institutional investors to match buy-side interest at midrate
SEATTLE, August 6, 2015
Global asset manager Russell Investments announced today that the firm’s trading desk has successfully engaged the Russell FX (RFX) Network to match two separate clients’ trades for the first time at the London 4 p.m. fix midrate price.
This first RFX Network client-to-client trading involved matching an investment manager's global equity orders with another firm's hedging orders. Offsetting portions—for example, a buy of British pound sterling and a sell of pound sterling—were matched initially, then Russell Investments used a trading algorithm developed by Integral Development to execute the remaining unmatched residual of the orders benchmarked to the fix.
"We're very pleased that RFX Network has successfully passed this important milestone," said Joseph Hoffman, director, equity derivatives and foreign exchange at Russell Investments. "This means that in addition to internal netting for a firm's own funds, institutional investors can now also benefit from advanced external netting in a safe and fair environment."
As described at the initial launch in the first quarter of 2015, RFX Network allows buy-side firms to automate execution of complex trade lists in a novel solution that combines internal netting within an investor's trading portfolio with external matching amongst the larger buy-side community. RFX Network combines two technology solutions developed by Integral—powerful internal netting capabilities and an FX facility that matches customer interests at the midrate—into a comprehensive foreign exchange execution service.
"Foreign exchange trading is changing, and we're proud that Russell Investments is at the forefront of that change," said Hoffman. "In addition to our fiduciary role in agency foreign exchange—thanks to our work with Integral to develop RFX Network—we're able to provide institutional investors with leading edge currency trading technology and buy side liquidity that makes it easier to trade and less expensive to transact."
Hoffman added that institutional investors can place orders electronically into RFX Network or have Russell Investments process them on their behalf. For usage information, please email RFX@russellinvestments.com or dial Russell's FX desk in Seattle at 206.505.2680.
About Russell Investments
Russell Investments is a global asset manager and one of only a few firms that offers actively managed multi-asset portfolios and services that include advice, investments and implementation. Russell Investments stands with institutional investors, financial advisors and individuals working with their advisors—using the firm's core capabilities that extend across capital market insights, manager research, asset allocation, portfolio implementation and factor exposures to help each achieve their desired investment outcomes.
Russell Investments has more than $272 billion in assets under management (as of 3/31/2015) and works with more than 2,500 institutional clients, independent distribution partners and individual investors globally. As a consultant to some of the largest pools of capital in the world, Russell Investments has $2.4 trillion in assets under advisement (as of 12/31/2014). The firm has four decades of experience researching and selecting investment managers and meets annually with more than 2,200 managers around the world. Russell Investments also traded more than $1.7 trillion in 2014 through its implementation services business.
Headquartered in Seattle, Washington, Russell Investments operates globally, including through its offices in Seattle, New York, London, Paris, Amsterdam, Milan, Dubai, Sydney, Melbourne, Auckland, Singapore, Seoul, Tokyo, Beijing, Toronto, Chicago, Milwaukee and Edinburgh. For more information about how Russell Investments helps to improve financial security for people, visit russellinvestments.com or follow @Russell_Invest.