Great coverage of TradingScreen’s Gilardi in WSL

TradingScreen’s Paolo Gilardi answers the tough questions in the Wall Street Letter roundtable on current trends in Foreign Exchange, covering regulation, TCA, and threats and opportunities in the world’s largest and most liquid market.

See a link to the full article here. 

On benefits: “With the foreign exchange market, you make the decision and it’s done. With securities, like fixed income, you can find yourself having purchased a security that you really cannot sell. It can be like the “roach motel” that they used to talk about in commercials for Black Flag pesticide – “you check in, but you cannot check out.”

On the emergence of FX TCA: Given the changes in sentiment, and the technological challenges in the market, traders are now showing a lot of interest in transaction cost analysis (TCA), particularly real-time TCA for foreign exchange. We are hearing from clients that tools for real-time TCA create alpha by identifying the venues where they can execute quickly and at the lowest possible cost. Real-time TCA for FX also allows them to demonstrate the value that they provide to their clients quantitatively.”