BestX

BestXecutor is now available on LINK! This decision augmentation tool utilizes the accuracy of BestX transaction cost analysis (TCA) alongside the capabilities of the FX Connect trading platform to enhance trade execution. It provides clients with actionable pre-trade analytics to improve both request-for-stream (RFS) and algorithmic execution. Feel free to contact us if you wish to witness the future of pre-trade TCA in action!

Sadly, today marks our final day at TradeTech FX Miami 2025. It has been a pleasure to present BestXecutor, our decision augmentation tool that combines the accuracy of BestX TCA with the capabilities of the FXConnect trading platform to enhance trade execution. There is still an opportunity to connect with Jonathan Wykes, Peter Salvatore, and Jim Cochrane to witness the tool in action. We have thoroughly enjoyed reconnecting with our clients and seeing many familiar faces here! Keep in mind that you don’t have to wait until next year to learn more about BestX; feel free to reach out to us for additional information.

In our latest expected cost monitor, we examined the impact of extending trading hours on the Tokyo Stock Exchange(Closing time:3:00PM => 3:30 PM, after November 5, 2024). Our analysis found no evidence of a permanent market regime change resulting from the exchange's rule adjustments. This aligns with previous research around the T+1 settlement change in US equity markets, where many anticipated shifts in trading behavior—but our data indicates no lasting impact on trading volume both for FX and equity. 📢 The key takeaway: Regulatory changes alone do not necessarily alter market behavior unless they reflect fundamental economic shifts. 📊 Other Highlights from our paper: ✅ FX Volatility Spike – USDCAD, EURUSD, GBPUSD, and USDMXN saw a significant increase in volatility, primarily driven by U.S. tariff policies. ✅ U.S. Yield Curve Movements – The yield curve shifted upwards in early January (except for the short end) but later receded. ✅ Strong Equity Market Performance – Major equity indices outperformed in January 2025, with DAX (+0.375%), STOXX (+0.331%), and CAC (+0.320%) leading in Europe. The S&P 500 Index also showed a +0.02% daily average increase. 📩 Want to explore our full findings? BestX clients can reach out to us for the complete research paper. #Finance #Trading #MarketInsights #Research #BestX

Join us at the TradeTech FX USA 2025 | The Buy Side Forex Conference in Miami, February 10-12, where Anthony (Tony) Bisegna, CFA, head of State Street Global Markets, will join industry experts speaking on a panel discussion on the outlook for capital markets, and the trends, challenges and opportunities shaping the year ahead. Meet the State Street team at booth No. 13 to learn more about our global suite of award-winning electronic trading platforms, which offer solutions designed to increase transparency, improve trading efficiency and deliver quantifiable execution. #tradetechfx #fxtrading

📊 Where Is the FX Business? Insights from Our Latest Business Intelligence Series For senior FX leaders, the big question is always: Where is the business ? 📢 In our latest Business Intelligence Series paper, we leverage the Sell Business Intelligence Tool to deliver actionable insights into market dynamics. One key finding introduces the concept of volatility elasticity: sophisticated clients like hedge funds and systematic trading firms are 3x more sensitive to market volatility compared to real money managers and corporate clients. This insight provides a clear, strategic roadmap: ✅ During Fed rate hikes (low volatility, low trading volumes): Focus on corporate and real money clients to maintain steady flows. ✅ During Fed rate cuts (high volatility, high trading volumes): Shift resources to hedge funds and sophisticated clients to seize growth opportunities. 💡 Want to see this sell side business intelligence tool? please reach out to schedule a demo and explore how it can drive impactful decisions for your team. #FX #BusinessIntelligence #SellSideLeadership #BestX

BestX Latest Paper: When Is the Best Time to Trade in the FX Forward/Swap Market? 💬 Intraday trading patterns have always been key for buyside traders trying to find the right moment to execute trades. While the intraday seasonality of spot markets is well-documented, the FX Forward and FX Swap markets haven’t received the same attention—likely due to their OTC nature. Our latest research dives into this overlooked area, analyzing liquidity distribution and spread dynamics across time zones in the FX Swap market. Some key takeaways: 📌 Regional Liquidity Patterns 🔔 🔔 🔔 Significant liquidity for AUD, NZD, and JPY during the Asian morning. EUR/USD liquidity dominates the London morning session. 📌 4 PM Fixing Dynamics 🔔 🔔 🔔 Unlike FX Spot, FX Swap markets don’t show the same clustering of liquidity around the 4 PM fixing, highlighting a distinct market behavior. Understanding these patterns helps traders and investors make more informed decisions. If you are bestX client, feel free to reach out and receive the detail paper.

Yangling, our Head Quant, and I were thrilled to partner with the FX Connect® team, represented by Stuart Parkins and Jason Fletcher, during the HiveFX EU Members Meeting held yesterday. A key highlight of the event was our masterclass titled "The Impact of Data-Driven Trends on the Future of Finance." Yangling Li delivered an engaging presentation that explored the growing significance of data within the foreign exchange market, underscoring the essential requirement for high-quality data to improve model performance. We extend our gratitude to all attendees. We hope you found the discussions enlightening, particularly regarding the future of data augmentation and its relevance for investment professionals in this dynamic environment. Additionally, we provided insights into our innovative product, BestXecutor, which aids clients in pre-trade decision-making by utilizing the accuracy of BestX® transaction cost analysis (TCA) alongside the capabilities of State Street’s FX Connect® trading platform. Our three roundtables, themed "Welcome to UItopia!" examined the potential of an optimized desktop to enhance productivity and trading efficiency, while also introducing clients to GlobalLink Digital and our award-winning solutions.

📊 2024: A Year of Insights and Innovation in Market Research 📊 This year, we’ve explored a variety of impactful topics in our monthly research, including: ✅ The impact of T+1 settlement ✅ The role of stock buybacks in market dynamics ✅ Detailed analysis of order flow imbalances We also expanded our fixed income research by introducing: 🔹 Sector-specific insights 🔹 Investment-grade yield trends 💡 Got a topic in mind? Feel free to email us at support@bestx.co.uk—we’re always eager to explore new areas of interest! 🌟 Highlights from Our December Expected Cost Monitor 🌟 1️⃣ Currency Markets: 🔹 EURUSD hit a record low of 1.04, the lowest since 2022, due to the U.S. presidential election and shifting Eurozone economic outlook. 🔹 Market activity and volatility surged across G7 and EM markets. 2️⃣ Fixed Income Trends: 🔹U.S. Bonds: The midsection of the yield curve saw a 20-30% increase in transaction costs amid heightened volatility but ended at similar levels to the prior month. 🔹UK Gilts: A downward trend in costs, with significant decreases at the short end of the curve. 🔹Corporate Bonds: Costs followed a reverse-U pattern, dropping by 10% overall. 3️⃣ Market Microstructure Updates: 🔹Tokyo Stock Exchange extended trading hours for the first time since 1954. 🔹Swiss Stock Exchange acquired London-based Aquis Exchange. 🔹The SEC approved the first 24-hour U.S. stock exchange, marking a significant shift in trading hours. 4️⃣ Volatility Metrics: 🔹The VIX Index dropped 20% in November, averaging near 16 points. As we wrap up 2024, we’re excited to carry this momentum into 2025. 🚀 Let’s continue to innovate, analyze, and grow together! 💬 What trends are you keeping an eye on in 2025? Share your thoughts in the comments or connect with us directly. #MarketInsights #Research #FixedIncome #Volatility #Innovation#BestX

We are forward to attending The Finance Hive on Thursday.