BNP Paribas has become the latest bank to formally partner
with execution analysis specialists BestX, with the initial focus of the partnership being on the
provision of post-trade transaction cost analysis (TCA) on algorithmic FX transactions, which will enable
clients to gauge the quality of their execution versus a number of benchmarks.
client requests it, details of their algorithmic transactions will be
automatically shared with BestX which will in turn will perform its own TCA on the
transaction, BNP explains. The partnership will allow clients to supplement the
existing pre- and post-trade TCA provided by BNP Paribas with the additional
assurance afforded by BestX’s independent analysis.
partnership is an exciting development as it further empowers our clients to
make more informed decisions about their execution process,” says Adrian Boehler, global co-head of FX, local
markets and commodity derivatives at BNP Paribas. “More granular
post-trade TCA enables clients to go beyond a one-dimensional discussion about
execution fees, and enables them to look more holistically at the relative
savings they are able to capture as a function of the quality of the algorithm
they choose to deploy. Hence clients can factor in the entire cost of the
execution workflow, rather than just one part of it, when assessing the merits
of one algo provider versus another.”
Pete Eggleston, a co-founder of BestX, adds, “The
vision for BestX is to provide the industry, both buy side and sell side, with
a standard set of rigorous, consistent analytics to help measure and
achieve best execution, and this announcement is another key step towards
achieving that goal.”
the release of the Global FX Code and changes in the microstructure of the
market will continue the trend towards transparency, the bank further says,
adding it continues to focus resources on developing new algorithmic execution
and TCA functionality.
towards transparency is here to stay, and the provision of TCA will form an
integral part of the service we offer to our clients in the future,” Boehler says.