No fair: buy side takes on pricing problem in FX forwards
Interest in TCA is growing as new data sources offer glimpse into murky swaps and forwards market
How do you land a fair price for a contract if little market data is available and if prices are skewed by a myriad of individual credit profiles anyway? Not that long ago, few buy-siders trading foreign exchange swaps and forwards even bothered trying.
But that is changing. Asset managers are increasingly applying transaction cost analysis (TCA) to their FX trades, venturing beyond spot trades where such scrutiny is commonplace.
“As the electronification of FX markets progressed and the buy
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