Articles tagged by BestX
BestX, formed earlier this year, has released its first TCA product. Colin Lambert takes a look.
If there has been a positive outcome from the trials and tribulations of the FX market in recent years it has been more focus on not only achieving best execution, but also about what that phrase actually means. This has resulted in more products and services aimed at helping clients make informed decisions around how they interact with the FX market – no longer is it just a sideshow that can be handled without due care and attention – as well as the gradual move into the market of new firms.
Thomson Reuters has partnered with BestX to enable buy-side participants using its FXall and FX Trading platforms to streamline analysis of transaction costs, helping them define, achieve and demonstrate best execution.
Through the partnership Thomson Reuters will offer connectivity to the independent transaction cost analysis (TCA) service from BestX from 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 have a single sign-on desktop integration.
Profit & Loss understands that BestX, the start-up technology company that provides independent trading analytics, has signed JP Morgan as its first major FX sell-side client.
The deal marks a significant step forward in the industry as it represents the first time a major dealing bank has integrated a truly third party’s service to offer post-trade verification of execution quality. It will allow the bank’s own clients to independently define, achieve and demonstrate best execution through a post-trade transaction cost analysis (TCA) when trading electronically with the bank.
Profit & Loss readers cast large numbers of votes this year for their preferred market makers and service providers.
Last year was the first that we changed the category description from banks to market makers to account for the larger proportion of non-banks that now comprise an important part of market making, and this is again reflected in the results. The industry’s changing dynamics are starting to show.
Voting, which spanned across time zones, was close in many categories, so we have listed the top three for each category to acknowledge the runners up.
Just eight months after releasing its first post-trade execution analysis product, BestX has rolled out its much-anticipated pre-trade execution analysis functionality.
The release helps the firm, which was co-founded by former Morgan Stanley staffers Pete Eggleston, Oliver Jerome and Aman Thind in early 2016, deliver on its vision of an end-to-end best execution service, as Eggleston explains. “We look at best execution as a lifecycle event where you can look at a trade or portfolio of trades throughout the cycle."
Execution analytics provider BestX is partnering with Cobalt, the FX post-trade processing network based on distributed ledger technology.
BestX is the first TCA and analytics provider to connect with Cobalt’s BlueSky service, enabling clients of both firms to independently validate client trades and define, achieve and demonstrate best execution through Transaction Cost Analysis (TCA).
Pressure for independent analytics in FX has increased over the past year, driven by MiFID II compliance, regulatory focus on transparency, as well as a more activist ‘asset-owner’ community that wishes to see evidence of best execution across all FX trades.
Citadel Securities has partnered with BestX to provide its clients with independent analysis of its FX execution quality.
"We're confident in the quality of our execution and partnering with an independent TCA provider demonstrates this. From a market structure standpoint, I think that the FX market can benefit from more transparency, whether it's through independent measurement of execution quality or the creation of a central tape," Kevin Kimmel, global head of e-FX at Citadel Securities, tells Profit & Loss.
Kimmel says that providing independent TCA provides value because it eliminates any potential concerns of bias in the execution analysis and because it helps create standardisation in terms of how the analysis is conducted.
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.
If the 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.
RBC Capital Markets has added BestX to the transaction cost analysis (TCA) tools available to its global e-FX clients.
Through an agreement with the independent provider of TCA, the bank says it will be able to provide its buy-side clients with independent TCA alongside its existing TCA offering. The independent TCA analysis will be available to clients executing algorithmic FX transactions and will be provided on a post-trade basis, enabling clients to independently verify the quality of the FX execution received.
BestX has expanded its suite of best execution analytics with the launch of a new regulatory reporting module. The new functionality allows buy-side clients to schedule and automate the best execution reports they need to generate to satisfy their obligations under MiFID II.
BestX says it has employed legal expertise to help navigate this complexity and distil from the text exactly what needs to be reported from a practical perspective. The product allows clients to configure the reports according to their own interpretation.
FX Connect is partnering with trade technology software provider, BestX, in order to offer transaction cost analysis (TCA) solutions globally.
“We’re taking what we consider to be an extremely impressive set of TCA functionality that enables out-of-the-box integration between the two platforms and offers customers what’s essentially a turn-key integrated solution that supports the TCA required to underpin best execution policy evidencing and execution,” David Newns, head of execution solutions for Global Link, State Street’s suite of e-trading platforms, technology, data and workflow solutions, tells Profit & Loss.
He adds: “Furthermore, the bespoke integration between FXConnect and BestX, which not only includes the sophisticated models which BestX currently offer, but also enhanced data around trade times, speed of execution and certainty of trade settlement makes this a unique offering.”
FlexTrade has announced it has integrated with BestX to provide its FlexTrader EMS clients with access to the latter’s FX trade analytics solution.
With a fully interactive interface, users can use BestX to analyse their FX executions in real-time, delivering transparency to enable better decision making whilst meeting the needs of MiFID II compliance for FX trading, the firms say. Every FX trade made within FlexTrader can be transferred live to BestX where users can analyse their performance in real-time.
BestX has expanded its suite of best execution analytics with the launch of a new Trend Analysis module.
The firm says the new functionality allows clients to generate bespoke analysis of trends in costs and other performance metrics over time, adding that improving the management information provided by the BestX analytics is a critical component of satisfying best execution obligations by allowing clients to identify how execution performance is changing over time, thereby allowing changes to be made to the process to continually refine and improve performance.
Societe Generale Corporate & Investment Banking (SG CIB) has announced a partnership with BestX, an independent transaction cost analysis (TCA) provider for algo FX spot execution.
The partnership with BestX will enable SG CIB clients to assess the costs and execution performance of their FX transactions through an analytical framework, the bank says. In addition, clients will be able access to a unique set of analytics, which will measure many aspects of execution performance, including spread and impact costs and signalling risk.
BestX is including the FX Tape, a service provided by FastMatch, a Euronext company, within the BestX Best Execution FX Analytics, allowing clients to choose to include the FX Tape as an additional benchmark against which they can analyse their trade portfolios.
BestX is the first FX analytics provider to offer clients FastMatch’s FX Tape service as a benchmark to its client base, which includes asset managers, hedge funds, wealth managers and sovereign wealth funds.
“As the industry standard for FX TCA, it is important that BestX offers the FastMatch FX Tape as an additional benchmark within our analytics for our clients. The inclusion of the FX market’s default streaming mid is another material step towards increasing the transparency of the FX market," says Oliver Jerome, Co-Founder at BestX.
BestX is expanding its best execution analytics suite to include the main digital currencies of bitcoin, ether, litecoin, bitcoin cash and ripple.
In a release issued today, BestX says that as adoption of these cryptocurrencies increases across new markets, the firm will look to meet the demand from its clients and deliver analytics that provide them the same transparency as for the traditional ‘fiat’ currencies.
“We are proud to be the first independent TCA provider in the world to offer this service, enabling our clients to leverage the award-winning BestX analytics to provide transparency into otherwise quite opaque markets,” says BestX co-founder, Ollie Jerome. “We continue to future-proof our offering to meet client demand as digital currencies become increasingly legitimised by the professional investor community.”
In this week’s In the FICC of It podcast, Colin Lambert has another one of his “theories” – this time about why 360T bought GTX – and Galen Stops thinks he knows why CboeFX is doing so well.
They also rail against PR-speak when looking at this week’s news from the crypto and corporate world and ponder the value of corporate treasuries turning themselves into professional FX trading units.
They close out by discussing the possibilities of voice activated trading by creating “eFXa” (Trademark pending) and P&L’s managing editor looks to continue his stellar* run of World Cup predictions by tipping yet another surefire winner.
Jim Cochrane has been named as head of North America sales for execution analysis firm BestX. Based in New York, the new role is something of a return to a speciality for Cochrane who spent almost five years at rival firm ITG running its FX TCA product set.
Cochrane left Deutsche Borse’s 360T earlier this year, where he was head of institutional investor sales for the Americas. Prior to that he was at ITG in the US, having moved from roles at Citi, Deutsche Bank and Royal Bank of Scotland.
State Street has acquired BestX, a software company that provides independent trade technology and TCA analytics.
The financial terms of the deal, which is expected to close in Q3 subject to closing conditions and regulatory approval, are not being disclosed. Following the deal, BestX will sit within State Street’s Global Link product suite, which is run by Martine Bond, executive vice president and head of trading and clearing for State Street Global Markets.
“Over the past few years, Mifid II, combined with broader economic and political stresses in the market and great competition in the FX market, has meant that our clients are looking for greater transparency and ways to improve their performance and their returns to client and shareholders,” says Bond
In this week’s podcast episode, Colin Lambert and Galen Stops share their views on the takeover of BestX by State Street. What does it mean for BestX’ USP of independence? What drove the deal? Will it be a success?
They also touch upon the latest lawsuit in FX circles, served by former Fastmatch CEO and founder Dmitri Galinov against the firm and its owner, Euronext US, and ask whether this highlights yet another barrier to success for the swathe of fintech firms targeting the FICC sector?
In this week’s In the FICC of It, your podcasters are taken to task by a listener over some points they may have missed when discussing the State Street/BestX deal last week and Galen Stops asks Colin Lambert the question (on behalf of a listener), ‘can you be too client focused?’
They also look at the impact of political events on FX markets and Lambert appeals to listeners of a ‘certain generation’ (i.e. as old as he is!) to come up with times when global politics was potentially such an influence on FX markets?
The evolving market structure of crypto markets also attracts their attention, and they ask the question; ‘Can innovation really thrive in banks today?’
Speaking at the Forex Network Chicago conference, Mike Harris, president of Campbell & Company, discussed the pros and cons of independently provided transaction cost analysis (TCA).
Pressed on whether a fintech firm being acquired by a larger company is necessarily a bad thing for their clients, Harris pointed to the example of BestX, the TCA provider that was acquired by State Street in August.
Harris explained that Campbell & Company partnered with BestX because their TCA product was focused specifically on FX rather than being adapted from equities, and that they were the first to offer peer-to-peer functionality so that firms could opt-in to compare their trades to other people’s, as well generally being at the forefront of the TCA space.
2018 “began with a bang” for Currenex and FX Connect due to the implementation of MiFID II, according to David Newns, global head of Global Link Execution Services at State Street, which owns both platforms. He adds that a “not inconsiderable amount of blood, sweat and tears” went into ensuring that the two Multilateral Trading Facilities (MTFs) that it was required to launch were up and running ahead of the January 3 deadline, an experience that was shared by many market participants in Europe last year.