- A multi-bank FX marketplace with real-time pricing from up to 15 Tier 1 counterparty banks.
- Outsourced execution services that automate the FX workflow for transparent best execution.
- Margin-free hedging* solution that removes the need to post initial or variation margin on FX forwards without jeopardising best execution.
- Independent transaction cost analysis (TCA) from BestX.
Overview: Headquartered in London, MillTechFX is an FX-as-a-service (FXaaS) firm that enables corporates and fund managers to access multi-bank FX rates via an independent marketplace. Its end-to-end solution automates the FX workflow, aiming for transparent best execution.
The firm believes that many mid-sized corporates and fund managers continue to significantly overpay for their currency execution and hedging requirements. It sees two long-standing causes:
1. Lack of transparency – Transaction costs can be hidden in the FX spread, typically calculated as the difference between the traded rate at the point of execution and the mid-market rate at that time. Moreover, corporates tend to work with only a small number of counterparties for their FX due to the operational complexity of setting up multiple banking relationships, making it harder for them to compare prices.
2. Inconsistent pricing – Banks and brokers commonly reserve their most competitive rates for institutions that transact the highest volumes, meaning small- and mid-sized corporates struggle to get the best possible deal.
MillTechFX digitises the FX process for all, from initial price discovery right through to reporting at the end of the trade life cycle.
Part-owned by Millennium Global, one of the world’s largest independent currency investment managers, MillTechFX’s marketplace enables clients to directly access preferential FX rates and credit terms from up to 15 Tier 1 counterparty banks, with fast and easy onboarding. This model aims for best execution and effective hedging management, and, says the firm, has been proven “to save clients up to 80% on their execution costs”.
Clients: Corporates, fund managers
Revenue: MillTechFX has seen an increase of more than 335% in monthly revenues since August 2022. Over the course of 2022 as a whole, it saw an increase of almost fourfold in committed client numbers and and an almost fivefold increase in committed client revenue.
Active region(s): UK, US, Europe
Partners: Bank of America, State Street, HSBC, Citi, UBS, Morgan Stanley, Standard Chartered, Deutsche Bank**, Societe Generale, NatWest, BNP Paribas, TD Bank, Investec, ANZ.
Funding: MillTechFX has raised $30m from private equity investors since launching in 2019.
Ownership: VCM Global Asset Management, Millennium Global
Elevator pitch: “MillTechFX is an FX-as-a-service (FXaaS) pioneer that enables corporates to access multi-bank FX rates via an independent marketplace. “MillTechFX’s market access, pricing power, and operational resource enables it to deliver a tech-enabled integrated solution that delivers transparency, cost reduction, and operational burden reduction for senior finance decision-makers at corporates. “It is end-to-end at no additional cost, offering easy and quick onboarding, multi-bank
best execution and hedging management, and connectivity into clients’ bank accounts, internal systems, administrators or custodians.”
Email: [email protected]
Phone: +44 207 663 8900
TMI view: An independent marketplace giving the smaller trader access to the kind of end-to-end information and FX services that previously only large-scale traders could enjoy.
Verdict: Best execution used to come at a premium. MillTechFX removes the obstacles.
*Excludes any required regulatory margin
**MillTechFX is permitted to identify liquidity providers as a source of prices. However, customers should note that: (i) MillTechFX’s liquidity providers are in no way acting as a manufacturer or distributor of investment services for MIFID II purposes in the context of the transactions between MillTechFX and its customers; and (ii) they have no direct relationship with or rights against liquidity providers when MillTechFX acts as a principal in its dealings with such liquidity providers.