Transaction cost analysis
From ACT Wiki
(TCA).
An analysis for a customer of their costs over a given time period.
- Delivering FX cost promises
- "FX best execution offers many benefits to treasurers; most importantly cost reduction.
- However, pursuing FX best execution can be extremely difficult for corporate treasurers, as it requires them to implement and manage multiple FX counterparty relationships simultaneously...
- Corporates should seek out solutions that also incorporate transaction cost analysis (TCA).
- TCA provides corporates with a transparent breakdown of FX costs across all their transactions as proof that a pre-agreed cost promise has been delivered.
- TCA can also be shared with the CFO, board of directors or shareholders, as evidence of best practice."
- Multibank FX platforms and fintech FX solutions - Eric Huttman, CEO of MillTechFX - The Treasurer online, October 2021
