Corporate financial officers have a fiduciary obligation to verify that their trading desks obtain the best possible result for the firm when executing currency transactions, a standard known as Best Execution.

To audit best execution compliance, risk teams use Transaction Cost Analysis (TCA) software. TCA tools measure the quality of execution by comparing actual trade prices against independent benchmarks:

Execution Slippage = Actual Executed Trade Rate - Benchmark Mid Market Rate

By analyzing slippage across execution venues, timing windows, and liquidity providers, corporate treasuries can optimize their trading strategies, negotiate better terms with clearing banks, and minimize transaction costs.