Trading at London 4pm and the Illusory Benefits of Maximum Liquidity

In our last annual Five Currency Themes Investment Insight, one topic clearly resonated - a study into execution practices at the London 4pm WM/Refinitiv benchmark fix. This topic highlighted to Australian institutional investors that the adverse costs of market impact vastly overwhelmed any claimed liquidity benefits. 

In this short paper, we continue to explore and enhance our bespoke analysis to further impress why trading at the Fix brings investors only the illusory benefits of maximum liquidity.