For example, he says that tools such
as Transaction Cost Analysis (TCA),
while useful, are not the be all and
end all solution to all the asset
manager’s needs.
“TCA supports achieving the best
overall result of trading - which does
not only consists of the best price
though,” he said. “For example it’s no
use having one counterparty at the top
of the pricing list if the same one fails
in every second trade matching, or for
example provides no market colour/
research to us. Liquidity analysis is
key for point-in-time or automated
execution which continue to play
a major part of the daily basket of
modern buy-side FX traders adapting
to change and enhancing their trading
style – they must understand how our
liquidity providers handle our orders
and confirm their intention for best
execution.”
For this reason, every year votes
are collected from Deutsche Asset
Management on which broker
provided the best service, and
this feedback is shared with the
sell-side. In this area of liquidity
fragmentation, there is also the
continuous need to remain engaged
with the sell-side, and to ensure
liquidity and pricing are sourced
from multiple different sources to
maintain execution quality.
“Our biggest duty in the
FX industry is to striv