Factors to consider when implementing a TCA framework

Factors to consider when implementing a TCA framework

There are many different terms and methods used to describe and analyse the costs and associated performance of execution. There is an element of choosing the right tools for the job, and some market participants may require a less extensive range of metrics to measure costs and performance. However, there are some fundamental elements that form the foundations for any meaningful analysis and in this article we explore these core components.

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Signalling Risk – is it a concern in FX markets?

Signalling Risk – is it a concern in FX markets?

What actually is signalling risk and is it something I should be worried about? This article will seek to answer both of these questions. As a topic, signalling risk has become more widely talked about in the FX markets following the move to a more order driven market, and the increased adoption of the use of algos. There are benefits to using execution methods such as algos , although there are also associated potential drawbacks. Signalling risk is one of these drawbacks.

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Best Execution - Do Algos have a role to play ?

Best Execution - Do Algos have a role to play ?

The use of execution algorithms in the currency markets has increased significantly over recent years and it would appear that this trend is set to continue for the foreseeable future. In this article we explore the benefits of using algorithms, but we also review the potential pitfalls that users should be aware of if they are to incorporate the use of algos in their execution process.

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Global Code of Conduct for FX Explained

Global Code of Conduct for FX Explained

The Bank for International Settlements (BIS) Foreign Exchange Working Group (FXWG) published the first phase of the Global Code of Conduct for the Foreign Exchange Market (Global Code) today.  It also published principles for adherence to the new standards, entitled FX Global Code: Public Update on Adherence. Final publication of the complete FX Global Code is targeted for May 2017. In this article, we attempt to highlight and explain some of the key principles behind this publication.

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Best Execution Under and Beyond MiFID II – a User’s Guide post Brexit

Best Execution Under and Beyond MiFID II – a User’s Guide post Brexit

The new best execution requirements under MiFID II will require banks, asset managers, and other MiFID investment firms to put into place substantial procedural and technical changes across a wide range of asset classes. This article seeks to break down the texts of the relevant regulations, with a particular focus on the practical implications for the fixed income and FX markets and the importance of new technologies and rigorous data analysis in this new era of best execution compliance.

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Using Execution Benchmarks - Why ?

Using Execution Benchmarks - Why ?

Benchmarking execution within FX has become standard practice. Benchmarks provide the reference points against which to measure performance. Using benchmarks is a no-brainer, however, the selection of appropriate benchmarks, and ensuring they are computed using a standard methodology using consistent market data, is far from a no-brainer. In this article we explore some of the larger landmines to look out for, and offer some suggestions for an approach for benchmark selection.

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