State Street moves to launch post-trade TCA for equities via BestX

BestX will provide equities TCA via its platform as State Street looks to provide multi-asset analytics to clients.

Boston-based State Street has confirmed the launch of post-trade transaction cost analysis (TCA) for equities through its analytics software vendor BestX.

BestX will now provide a post-trade TCA module for global equity markets, which will be accessible via its web interface and include data analysis, report configuration and generation capabilities.

State Street acquired the TCA specialist in 2018, when the analytics provider was focused on providing its platform to foreign exchange market participants. BestX has since expanded its analytics to fixed income trading due to increased demand from clients for a multi-asset TCA platform.   

“We responded to our clients’ needs by expanding BestX to provide a full multi-asset class offering,” said Pete Eggleston, BestX co-founder. “Whilst launching fixed income at the end of 2018, it quickly became clear that clients wanted one application to analyse all of their trading. The desire to consolidate data and vendors is a trend that we anticipate will accelerate over the next few years and we needed to ensure we were positioned appropriately for this.”

Founded in 2016, BestX was established to create an industry standard for FX TCA. US investment bank JP Morgan became the vendor’s first major institutional client when it implemented the firm’s third-party best execution analysis for electronic FX trading back in 2017.

State Street also integrated the BestX TCA with its institutional FX trading platform, FX Connect, shortly after the acquisition was completed in a bid to provide its global client base with enhanced TCA capabilities.

“BestX’s expansion into fixed income and equities is a testament to the team that in less than five years since inception, BestX now offers a full multi-asset class offering,” said Martine Bond, head of GlobalLink, State Street’s suite of e-trading platforms, technology, data and workflow solutions.

“Through our partnership with BestX, following State Street’s acquisition in 2018, we’re delighted to provide the resources and support to access the enormous volume of market data required to support such a complete product offering.”