Thomson Reuters has announced that it is collaborating with FX analytics specialist BestX, enabling buy-side participants using Thomson Reuters FXall and FX Trading to streamline analysis of transaction costs, while helping them to define, achieve and demonstrate best execution.
Through the partnership, Thomson Reuters will offer seamless connectivity to the independent transaction cost analysis (TCA) service from BestX via its FXall and FX Trading desktops.
Thomson Reuters customers will be able to have their trades sent automatically to BestX for independent post-trade transaction cost analysis, and also benefit from single sign-on desktop integration.
As MiFID II and the implementation of the Global FX Code of Conduct define the future behaviour and obligations of all market participants, there is an increasing need for buy-side institutions such as asset managers, wealth advisors and corporations to demonstrate best execution.
Thomson Reuters recognises the very specific needs of the FX buy-side for transaction cost analysis.
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The BestX FX Best Execution Analytics application provides customers with interactive reports that include a range of performance metrics designed for the specific characteristics of the FX market including spread cost, impact cost, performance against specific benchmarks, post-trade revaluations, implementation shortfall, and signaling risk.
It also provides a single point of analysis for trades executed across all transaction venues, using consistent methodology and benchmark data regardless of execution source.
Neill Penney, Co-Head of Trading at Thomson Reuters, said: “Thomson Reuters recognises the very specific needs of the FX buy-side for transaction cost analysis. Our open platform approach means we are able to connect BestX with our FXall and FX Trading platforms, bringing our customers improved capabilities while eliminating the integration work they would otherwise have to perform themselves.”
As part of the agreement, BestX will also adopt Thomson Reuters leading FX market data to calibrate and power the proprietary models in the BestX FX Analytics platform.
The strategic partnership has created a unique proposition by combining BestX’s real-time analytics suite with the Thomson Reuters data set to provide a powerful offering for computing best execution performance metrics in FX.
The partnership will also see Thomson Reuters take a minority equity stake in BestX and have a representative on the BestX Board.