Accurate timestamping of FX trades is essential for best execution analysis, and thus helping firms in delivering value to clients.
However in some instances our members noted that accurate timestamps for trades delegated to a sub-custodian were not being provided.
Since the paper’s publication, our members have expressed concerns that while progress in reforming these issues has been made in some areas, in others it has been slow, and that while many custodians have been able to offer the hoped-for level of timestamping, in others the provision of timestamps remains inadequate.
The IA published a further briefing paper in April 2022, which once again sets out the need for reform and urged further progress.
Along with members of its FX Committee the IA will continue to engage with custodians to push for further reform.