FX: TCA use creeps up but benefits still evolving

The impact of transaction cost analysis (TCA) on the FX buy side remains hard to quantify, despite the relative maturity of the technology.

Research published by Greenwich Associates and based on interviews with buy-side traders around the world indicated that 58% of FX trading desks were using TCA systems.

The research found that FX TCA was ahead of fixed income in terms of buy-side adoption, driven in part by a more easily accessible data set for analysis and the increasing usage of algorithmic trading and electronic trading venues.

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John Halligan, Global
Trading Analytics
 

Yet Global Trading Analytics (GTA) president John Halligan suggests that the rate of deployment of TCA by FX market participants has not been particularly rapid, although he also accepts that investment in the technology is increasing.

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