Price and perfect execution

Firms are trying to give clients visibility on measuring whether the price they are receiving is a good one, but the cost of execution is variable and hard to pinpoint – and it’s not just about price

target-man-shutterstock-monamis-digi
On target? Measuring the cost of execution is tricky in the absence of common standards. Photo: Shutterstock

In the world of equities the question of how much any given transaction costs is relatively straightforward to answer. In foreign exchange it depends who you ask. But times are changing, and efforts to develop a more precise and perhaps standardised method of doing transaction cost analysis (TCA) to prove best execution, and understand its overall cost, are well under way.

The drive towards better TCA can be directly linked to the relatively new and regulation-driven need to prove best executio