Currency viewpoints: Moving beyond best execution
18 August 2026
The evolution of FX TCA: From compliance audit to multi-dealer platforms
Modern transaction cost analysis has evolved from a passive compliance audit to the primary engine of FX execution quality
“How did I do?” Every institutional foreign exchange trader asks this question at the close of a session. The answer is critical. Two asset managers can make identical investment decisions yet generate vastly different net returns because one executes its FX trades more effectively. For large public and private pension funds, where a few basis points can translate into millions of dollars, execution quality is no longer just a compliance checkbox—it is a distinct competitive advantage.
The FX landscape has fundamentally transformed over the past two decades. What was once a highly centralized, over-the-counter market dominated by a handful of global tier-1 banks has become a decentralized market supported by a diverse mix of banks, non-banks and electronic liquidity providers. Today, non-bank LPs compete directly with market makers, liquidity is dispersed across dozens of electronic venues, and algorithms dictate execution.
To keep pace, transaction cost analysis has undergone its own structural evolution—shifting from a passive retrospective audit into the central nervous system of modern FX execution strategy.
Read more in the below article from our specialist currency partner, Mesirow.
Mesirow is an independent financial services firm based in Chicago that provides proven capabilities in global investment management, capital markets, investment banking and wealth management. Warakirri is the exclusive representative of Mesirow in Australia.
