ITG, the broker and technology firm, has launched a transaction cost analysis (TCA) product for the institutional foreign exchange (FX) market. ITG TCA for FX claims to offer the richest dataset available in the market, with data from 10 providers including some of the largest FX market makers, trading venues and banks. The product measures transactions against tick-level traded rates, indicative rates, fixing rates and the forward rate curve.
ITG TCA for FX should allow buy-side traders, currency speculators and investment professionals to better understand the liquidity landscape and manage volatility more effectively, which can help reduce overall trading costs and improve foreign exchange margin trading and/or hedging strategies.
The new product complements ITG TCA for equities, which is widely used among asset managers globally. It is used to assess trading performance and implicit costs under a variety of market conditions, enabling traders and portfolio managers to adjust strategies, reduce costs, boost performance and potentially improve fund rankings.
"FX is the largest and most liquid securities trading market, but it is also among the least transparent and most challenging segment to trade in," said Ian Domowitz, head of ITG Analytics. "ITG TCA for FX combines the power of ITG's equities TCA platform with an unmatched set of FX transaction data in order to measure performance, improve execution processes and quality and fulfil compliance requirements."