Virtu Adds TCA for FX Algos


Virtu has launched a Transaction Cost Analytics (TCA) service for FX Algos, which is designed to enhance strategy performance evaluation and comparative analysis.

The new FX TCA offering merges data from three distinct sources:

  • FX benchmark data sourced from Virtu’s market making business
  • Virtu's global, broker-neutral market impact model: FX Agency Cost Estimator (ACE)
  • Direct connections to bank algo providers on behalf of clients that subscribe to the offering

This combination enables Virtu's clients to enhance their understanding of algo performance and compare FX algo providers and strategies to help improve their execution outcomes.

"Virtu is the leading equity TCA provider to the buy-side, serving 75% of the world's largest asset managers and this extensive experience - combined with the expertise from Virtu's multi-asset market making operations - uniquely positions us to support our clients' analysis of algorithmic execution across asset classes. Our new FX TCA functionality is designed to enable both comparative metrics between providers and strategies, as well as to help clients determine which execution strategies to use given their risk appetite and market conditions," said Kevin O'Connor, head of Virtu's Analytics and Workflow Technology division.

Virtu's TCA products are offered through its broker-neutral Workflow Technology and Analytics division, which provides solutions used by buy-side and sell-side firms around the globe to monitor, analyse and improve their quality of execution and streamline workflows.