The relative lack of transparency and standardisation within the OTC markets makes it difficult for investors to accurately measure, analyse and compare execution performance. This issue is compounded at a time when the OTC markets become increasingly complex, evolving into a hybrid market structure state, combining both quote and order driven protocols, with an increasing use of execution methods and products. Measuring execution performance has become essential due to demands from asset owners, regulatory requirements and the need to focus on cost savings to enhance returns in a low yield environment.
BestX provides independent analytics via a unique user interface, allowing interactive analysis of performance results in real-time. The application focuses on the life cycle of the trade, providing both pre and post-trade modules, and effectively allows an investment firm to implement its best execution policy within the software, with user-definable execution factors and exception metrics. BestX is open architecture, accepting trade data for its clients from any source they require, including from their executing counterparties directly if required or via STP from platforms such as FXConnect or FXall.
BestX is an award-winning product, providing the industry with a market standard for measuring execution performance. Performance is measured using a market data set comprised of data from over 100 liquidity providers, contributing on average over 1 billion price updates per day across the FX market. As at November 2018, it is used by over 65 of the world’s largest financial institutions, across both the buy and sell-side. The sell-side engagement further provides BestX with a unique web of connectivity across the market, linking to all major liquidity providers directly, in addition with the most widely used EMS and OMS platforms.