Buy-side traders are increasingly changing the way they trade and the counterparties they choose as the sophistication of execution benchmarking tools increases, say TCA providers... The past year has seen new TCA products emerge from a number of providers.
Trading technology provider TradingScreen also launched its TCA offering late last year, featuring traditional monthly and daily execution analysis and a variety of benchmarks, including time-weighted averages. According to Paolo Gilardi, head of US foreign exchange sales at TradingScreen in New York, traders increasingly need to show their clients proof that orders have been executed in the best possible way.
"More and more clients realise that best execution, and the way you monitor and manage this, is becoming very important. Especially in the traditional asset manager space, portfolio managers want to know how their FX has been executed in the best possible way. We are broker-neutral, so this helps create a trust and we can observe execution from the outside," says Gilardi.
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FX Week - Miriam Siers - March 15, 2012