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Fact sheet | FX risk
FX Post-Trade Transaction Cost Analysis with MillTech
Are your FX trades being executed at a competitive rate? Benchmark your execution against independent market data with a free post-trade analysis through our third-party analytics provider, BestX.
At a glance
Who is it for- Fund managers and corporate treasury teams looking for a review of their FX execution performance.
What it measures- Your FX execution cost against the mid-market rate (MID) at the time of each trade, broken down by counterparty, currency pair, product and tenor.
How it works- Send us your trade data, BestX analyses it independently, and we take you through where your costs sit and what they would be with MillTech.
What it costs- For prospective clients, an initial review is free with no obligation. For clients, TCA is included as part of MillTech’s fixed fee service.
What is a Transaction Cost Analysis?
Transaction Cost Analysis (TCA) measures the cost of your FX execution by comparing the rate you achieved with an independent mid-market rate (MID) at the time of the trade. It shows how much of the price you paid sits above the MID, and where that cost is concentrated by counterparty, currency pair, product and tenor.
Use cases
Reduce execution costs
Identify where execution inefficiencies are adding cost across your FX activity, so you can address them with counterparties or adjust how you trade.
Evidence best execution
Demonstrate to investors, boards and regulators that FX trades were executed competitively, with evidence produced outside the counterparties who priced them.
Strengthen FX governance
Give audit and risk committees a consistent record they can review each quarter, without relying on ad hoc analysis.
What your TCA report covers
Portfolio and trade-level analysis
Review execution cost across your full portfolio, or drill down into individual trades. Each trade is compared with the mid-market rate at the point of execution.
Execution breakdown
Compare execution costs across counterparties, currency pairs, products and tenors to see where costs are concentrated, and which counterparties price you most competitively. Forward costs are split between the spot rate and the forward points.
- MillTech clients
Quarterly trends
Track execution cost alongside traded volume and number of trades each quarter to measure how execution cost is changing and inform future execution decisions.
Why use an external TCA provider?
Independent perspective
Analysis is separate from internal teams and executing counterparties, removing the conflict of interest in assessing your own execution.
Broader market data
Benchmarks are drawn from a broad range of market data, giving you a reliable picture of how your execution compares.
Less work for your team
No benchmark sourcing or spreadsheet reconciliation. You receive a complete report, presented by an FX specialist.
Heritage
MillTech was born out of Millennium Global Investments, drawing on 30+ years of institutional currency management expertise, including helping to establish the founding principles of the FX Global Code with the Bank of England.
How a free TCA works with MillTech
1.Collate your trade details
We only require a few core trade details: counterparty, product, currency pair, direction, amount, trade date, execution time, value date and rate. Timestamps to the second give the most accurate results.
2.Choose how you send it
Complete our TCA template form, send raw data exported from your internal systems or trading platform (such as FXall), or simply share PDF trade confirmations.
3.Independent analysis
We pass the information to BestX, our independent analytics provider, who reconstructs the market at each execution and produces the analysis.
4.Report, walkthrough and action
You receive your TCA report and a session with an FX specialist to work through where costs are concentrated and what the same trades would cost through MillTech.
Find out what your FX execution costs
Request an independent transaction cost analysis, followed by a walkthrough with our FX specialists. Free, with no obligation.
FAQs
Can I get a TCA if I don’t trade through MillTech?
Yes. MillTech can analyse your historical FX trade data regardless of which counterparties or platforms you used to execute them.
Does TCA cover forwards, swaps and NDFs?
Yes. MillTech’s post-trade TCA covers FX forwards, swaps and non-deliverable forwards (NDFs) as well as spot transactions.
How long does a TCA take?
We aim to turn results around within 48 hours of receiving complete trade data, then arrange a walkthrough with an FX specialist to take you through the findings.
How is my trade data handled?
Your trade data is used only to produce your TCA and is stored in a secure, access-restricted folder. We share it with BestX for the analysis and with no other party. Counterparty names can be anonymised before you send the data, and we can put an NDA in place first if you prefer.
Who is BestX?
BestX is an independent analytics platform, owned by State Street, widely regarded as the industry standard for FX transaction cost analysis. MillTech passes your trade data to BestX, who produces the analysis. It operates separately from MillTech.
How much does a TCA with MillTech cost?
For prospective clients, an initial TCA review is free with no obligation to use MillTech’s FX risk management solution. For existing clients, a quarterly TCA is included as part of the fixed fee service at no additional cost.
What is the difference between pre-trade and post-trade FX transaction cost analysis?
Pre-trade analysis estimates transaction costs before execution, helping to assess the best time to trade, how to split orders and which execution methods to use.
Post-trade analysis measures actual execution costs by comparing executed rates against independent market benchmarks to identify where costs arose and to help improve execution over time.
MillTech provides post-trade FX transaction cost analysis only and does not offer pre-trade analysis.
Enhance your strategy with our FX risk management solution
Hedge your currency exposure without tying up cash or adding headcount
Know what to hedge
Calculate required trades automatically from your exposures, hedge ratios and tolerance bands.
Test before you commit
Simulate your hedging strategy against historical rates to see the impact on cash flow and P&L.
Execute competitively
Access up to 15 tier 1 counterparty banks through one agency ISDA agreement, with pricing terms supported by MillTech’s aggregate client flow.
Keep your cash working
Uncollateralised forwards mean no margin and no collateral calls when the market moves*.
*This does not include regulatory margin requirements.
Glossary
- Mid-market rate (MID):
- The midpoint between the best available bid and offer, as calculated by BestX. The neutral reference point against which execution cost is measured.
- Execution cost:
- The difference between the rate you achieved and the MID at the time of the trade, in basis points. Shown as Execution Slippage in MillTech’s client reports.
- Forward points:
- The amount added to or subtracted from the spot rate to give the forward rate.
- Basis point (bp):
- One hundredth of a percentage point, the standard unit for expressing FX execution cost.
- Best execution:
- The obligation to take all sufficient steps to obtain the best possible result for a client, and to be able to evidence it.
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