[ I N T E R V I E W
and expected outcomes.
In terms of a broad character-
istic I would suggest that the
provider needs to be one who
is adaptable to changes as they
arise and able to implement
change quickly. In the past two
years we have onboarded a new
execution management system
(EMS) and new TCA provider,
our process for selection was the
same insofar as we met the vari-
ous vendors available, performed
rigorous analysis which enabled
us to arrive at a shortlist and
from there a decision was made
after consultation with a broader
group of stakeholders.
While the process was the
same, the specific technical
characteristics and attributes
we were looking for were very
different, simply because the two
systems were being onboarded
to improve different stages of the
process.
How do you establish when it is
better to use third-party TCA,
what are the standards you should
be expecting from providers and
how do you ensure the indepen-
dence of the data?
NW: It wasn’t many years ago
that TCA was a box ticking
exercise. These days, TCA has
become a powerful tool for
validation and improvement of a
process, but to implement change
you need to be confident that the
information you’re being given is
correct, otherwise the changes
you make may be unwarranted.
In a fragmented market such as
foreign exchange where access
to data is expensive, ensuring
you access the most complete
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N I C K
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price tape for spot and forwards
usually means having to utilise a
third-party provider. So, the first
standard is accuracy of the price
data points.
Second is the depth of analysis
on offer, which has evolved well
beyond cost versus mid. We now
have the ability to compare each
trade to several benchmarks and
then use our TCA database to
look for themes which may imply
that elements of our counterparty
selection or trade workflow need
attention.
How do you go about evaluating
technology providers and starting
a dialogue? What would you rec-
ommend to those who might be
looking to do begin this process?
NW: It is key to understand what
it is you require for your specific
workflow. For example, if you are
focused on adding algorithms to
your list of execution tools, are
you happy using multiple single
dealer platforms which may give
access to greater pre-trade ana-
lytics, or would you rather access
via an EMS which consolidates
them all into one place, with the
potential added benefit of im-
proving post trade analytics?
Understand your needs and
then begin obtaining as much
information from others as pos-
sible. Speak to those in a similar
role. Conferences can be a useful
arena for this but be mindful that
any endorsements come with the
caveat that what is key for others
may not be as important for
you. It’s then vital that you as-
sess providers directly and build
as complete a picture as possible
before you reach a conclusion.
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