In what it called a first for the industry, TradingScreen Inc. has announced it has launched the first fair FX pricing index: FFFX. The company said the FFFX Index was developed as part of the larger TradeAnalytics suite, providing multi-asset class solutions for pricing (Market Data, Indices, Valuation), TCA services (pre-trade, in-trade and post-trade) and compliance (RiskHub, Market Surveillance).
TradingScreen's streaming FFFX Index is calculated each day from extremely high quality prices spanning market makers and independent sources of liquidity using proprietary methodology.
The FFFX Index is categorically non-manipulatable; as such, this rigging-proof metric is the foundation for benchmarking in TradingScreen's TCA for FX. In addition to post-trade TCA uses of the FFFX Index, extensive modeling of this Index and TradingScreen's FX data warehouse has formed the basis for a pre-trade cost and volatility estimator, thereby allowing the TradingScreen client to examine the cost vs. demand for FX liquidity prior to executing the order.