BestX launches reporting module, partners NAB

National Australia Bank is the latest bank to partner transaction cost analysis (TCA) provider BestX to give its buy-side clients third-party analytics services alongside its existing offering.

BestX has signed several deals this year with banks such as BNP Paribas, HSBC, JP Morgan and RBC Capital Markets, as well as non-bank market-maker Citadel Securities.

BestX also announced on October 30 that it has expanded its suite of best execution analytics by launching a regulatory reporting module. The new tool will allow buy-side clients to schedule and automate best execution reports to comply with the upcoming second Markets in Financial Instruments Directive.

“The Mifid II text has proven to be difficult to interpret for an over-the-counter market such as FX. Even those reports that are well-specified in the text – e.g. the RTS 28 Top 5 report – have different interpretations for a market that is still largely quote-driven,” the firm said.

Through BestX, clients can configure the reports according to their own interpretation, providing flexibility within the specified regulatory framework. Furthermore, the application allows clients to implement their specific best execution policy within the product, allowing the selection and prioritisation of execution factors relevant to the specific institution.

This configuration flows through into the regulatory reporting module, where the selected configuration is reported and used. Output from the module can be used to satisfy cost disclosures required under other legislation, such as the packaged retail and insurance-based investment products (Priips) regulation in Europe and the UK, and RG 97 in Australia.

“We are excited with the latest addition to our product suite. Many of our clients are wrestling with implementing a complex – and in part vague – set of regulations with limited resources and time. This latest product release is aimed to help remove this burden and stress,” said BestX co-founder Pete Eggleston.

BestX, launched in March 2016 by former Morgan Stanley bankers Eggleston and Oliver Jerome, entered into a strategic partnership with Thomson Reuters in December to gain access to the platform’s data. As part of the deal, Thomson Reuters acquired a small stake in the technology company.