A new model for predicting fixed income trading costs

BestX, the execution quality analysis provider, has launched a new tool for fixed income traders to support their pre-trade capabilities.

The ‘Expected Cost’ model is currently in a beta phase, meaning it is being tested by traders as it is still under development, to enhance its potential capabilities and deliver feedback on performance.

“The latest product which came out this weekend, released a new feature,” explains BestX co-founder Pete Eggleston. “Coming up with a model to estimate the cost of transacting in each month, at a given time of day, and a size or number of units for a security. We have that model in FX, they are common models in equities but to our knowledge that does not exist in fixed income.”