FXCSI to launch free, transparently designed TCA tool
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Foreign eXchange Consulting Services International (FXCSI), a transaction cost analysis (TCA) services company launched in 2010, is set to release a new TCA product in December that it says has been transparently designed to appeal equally to the buy and sell sides of the market.
The product – which will be freely available through the FXCSI website from December 1 – can perform post-trade TCA analytical functions for over 50 currency pairs that account for 95% of the global volume of the FX market.
The TCA tool generates both a spot FX TCA period report that briefly analyses the quality of FX transactions in a client-defined timeframe as well as in an expanded spot FX report that covers the value achieved over the life of the trades in more detail.
The company has 15 institutional investor clients in Canada, where FXCSI is based, says CEO Mark Van Roon
Van Roon founded FXCSI after working for RBC Dexia Investor Services from 2007 to 2009, first as a FX product manager and then as global director of product development for FX.
Van Roon says he decided to delve into the TCA side of the FX industry because he felt there were few firms in the market offering products that were transparently designed.
Van Roon says FXCSI’s product can be called transparent because it was designed using a methodology that the user of the tool receives when they register for the product.
He says providing a methodology for how the product works in forming benchmarks for FX trades is not replicated by other forex market TCA analytics firms.
In making the methodology available along with the free tool, Van Roon says users can execute TCA analysis on their trades using the application safe in the knowledge that FXCSI’s design was not influenced by either the buy-side or the sell-side of the market.
“We are comfortable enough in the transparency of our product to be able to open up the kimono and tell people how we have developed it,” says Van Roon. “We have taken a very complex problem in TCA and distilled it and simplified it, making it so people can conduct this analysis themselves, which we feel is a compelling value proposition.”