Editorials

TraderTools’ Flow and Execution-Quality Analysis e-FOREX - April 2011

TraderTools offers its customers flow and execution-quality analysis, based on data collected using its FX trading platform. Generated reports include flow-breakdown by currency pair and liquidity provider, order and fill statistics, as well as corresponding trends. The analysis can be run daily, weekly, monthly, or upon request for an arbitrary data subset.

The analysis also compares the realized VWAP on a per-order basis with an estimate for the price that would have been obtained without the benefit of TraderTools' FX liquidity aggregation and smart order routing capabilities. Average price improvement for a top-tier bank is on the order of $60 per million, relevant not only to nostro executions but also to tightening proprietary prices to the bank's customers.

Market trade "BUY EUR CAD" in the amount of 1,330,000 with rates supplied by 8 liquidity providers. TraderTools' price improvement is $97/m better than the next price and $225/m better than the average price.