Exploring the advantages of an open source FX TCA library

June 2023 in Previous Features

With the introduction of MiFID II, best execution has become a necessity in all asset classes including FX. TCA can help us to determine the cost of our trading, and in particular ways of reducing it. However, what is the best way to do transaction cost analysis?

The most flexible approach is for investment firms to develop their own bespoke TCA software. This can be fully customised for their needs. In particular, firms are free to develop their own proprietary metrics to complement more common metrics. It also allows firms to keep their trade history internal. This also enables them to compare using any market data sources as benchmarks. For example, they can compare using an external benchmark such as New Change FX against their own aggregated The most flexible approach is for investment firms to develop their own bespoke TCA software. This can be fully customised for their needs. In particular, firms are free to develop their own proprietary metrics to complement more common metrics. It also allows firms to keep their trade history internal. This also enables them to compare using any market data sources as benchmarks. For example, they can compare using an external benchmark such as New Change FX against their own aggregated

The most flexible approach is for investment firms to develop their own bespoke TCA software. This can be fully customised for their needs. In particular, firms are free to develop their own proprietary metrics to complement more common metrics. It also allows firms to keep their trade history internal. This also enables them to compare using any market data sources as benchmarks. For example, they can compare using an external benchmark such as New Change FX against their own aggregated

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