FXall a leading executing venue for banks, ECN’s and hedge fund clients has gone live with its EQA (Execution Quality Analysis) tool.
The product also known as Transaction Cost Analysis is widely used in the Equities space, post MIFID all regulated instruments must give Best Execution to clients and the pre and post trade reporting ensures the consistency of trades being reported.
The EQA is useful for traders who trade in spot, forwards and swap trades as it gives them a full outline fo execution times and the state of liquidity.
A great tool for certain strategies traded using Algorithmic Trading where liquidity is the key decision to enter or exit a trade.
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The EQA product reviews the results achieved using the execution mechanisms and liquidity providers available on FXall, providing a comprehensive summary of spot, forwards and swap trades executed during a given time period. It covers the most actively traded currency pairs, according to FXall’s New York-based chief executive Phil Weisberg.
“We have been piloting this for some time with a select group of clients and getting their feedback, and we feel we have arrived at a standard set of reports, endorsed by clients, so we are ready to distribute it more widely,” says Weisberg.
TCA in equity markets has been increasingly popular on buy-side trading desks in recent years as it enables traders to prove best execution. Although a number of providers have made efforts to extend their TCA offerings to FX, it is far more challenging to do TCA in FX than in equities.