Turn impact-adjusted FX Forward Curves now on LSEG Workspace

This capability enables seamless FX workflows across our key customer communities of:

• Sales & Trading (FX sales, FX traders, middle and back-office)
• Buy-side (FX asset owners and managers, middle and back-office),
• Corporates (treasury)

In the world of foreign exchange trading, transparency in forward FX pricing remains a significant challenge. Buy-side traders often encounter discrepancies between calculator rates and those quoted by their liquidity providers, especially when outside of standard tenor dates (1M, 3M, 6M). This lack of alignment is primarily driven by two key market events:

1. Demand-Driven Funding Squeezes: At the end of the month, quarter, or year, corporate funding requirements surge, resulting in increased demand and a liquidity squeeze. This phenomenon is evidenced by a spike in forward-forward rates.
2. Central Bank Monetary Policy Implementation

Standard calculators often overlook these complexities, instead relying on simple interpolation of standard tenor dates. Yet notably, 20% of all RFQ trades on FXall occur on these special dates.

In collaboration with partner banks, LSEG has developed FX Turn Impact-adjusted FX Forwards curves. Leveraging our cloud-based Adfin analytics, these curves provide a comprehensive forward FX term structure, complementing monthly tenors with these special turn dates. This is crucial in today’s volatile short-term interest rate environment.

The curves are available in the Workspace Curve Builder (CURVB) or in the FX forward calculator (FWDS) empowering Traders at Corporates, Asset Managers, Hegde Funds or liquidity consuming Banks, before they hedge their risk on FXall or Advanced Dealing. 

They are also available as Data Feeds which empower Market Makers looking for systematic price discovery or pricing clients over their FX e-trading channels.

LSEG’s Group Head of FX Sell-side Trading, Bart Joris, said: “The key to success in trading is having the right data at the right moment. In a stressed market, transparency matters for returns. Having visibility on the forward curve enables participants to improve trading accuracy, enhance price discovery, and manage mark-to-market and credit risk more effectively. This leads to a more robust and inclusive FX trading community.”