This paper asserts that the mid-market price should be the benchmark data set against which transaction
costs are measured in OTC currency markets. On average, market-making banks trade at the mid-market
price. The cost in basis points between the transacted rate and the mid-market rate, multiplied by the
volume of the empirical trade, provides a universally applicable cost benchmark in OTC foreign
About FX Transparency, LLC.
Mission: To be our clients’ FX expert, helping to reduce execution costs, create operational efficiencies and support compliance requirements for FX best execution.