Buy-side Perspectives Issue 3 - Page 17

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