The pairing of Thomson Reuters and FX analytics specialist BestX puts together a comprehensive data set with more analytical functions and visualisation capabilities, according to executives from both companies.
In the partnership announced December 5, Thomson Reuters will offer connectivity to BestX’s transaction cost analysis (TCA) service, and Thomson Reuters users may send trades automatically to BestX for TCA service.
“The BestX analytics reflect their deep understanding of the FX market structure and include unique reporting around market impact, slippage vs chosen benchmarks, signaling risk, and expected vs actual spread, which takes into account the size of a trade,” said Neill Penney, co-head of trading, Thomson Reuters. “Their tools also include an exceptions management workflow, which is key in compliance settings. We have been really impressed by the BestX solution.
“With BestX, there are a number of features which distinguish it as the best-in-class service, including independence, analytics, sophisticated visualisation tools and the fact that users can customise reports and include ad hoc real-time analysis,” Penney added.
Performing TCA in OTC markets require the most representative data set available, according to Pete Eggleston, a co-founder and director of BestX. “Thomson Reuters provides a critical and unique part of such a dataset, including dealt price data across many less liquid markets,” he said. “Such data is essential to inform the cost and impact analytics developed by BestX.”