Cost per FX Trade (Back Office)

Metric Details & Benchmarking Report Download

KPI Benchmarks : Cost per FX Trade (Back Office)

  • Benchmark Range
  • Benchmark Average $4.46
  • Benchmark Sample Size (n) 168

* Is High or Low Best: Lower is Better


KPI Details : Cost per FX Trade (Back Office)

Cost per FX Trade (Back Office) measures the operational efficiency of foreign exchange trading processes. A high value for this KPI may suggest slow trade settlement times, high rates of trade rejection (in the event that trade details do not match), overstaffed trade settlement functions or ineffective clearing procedures. Companies with a high FX trade processing cost typically have an unnecessary number of trading touchpoints, which has a negative effect on trade processing productivity.

KPI Best Practices : Cost per FX Trade (Back Office)

  • Keep records of errors by type to identify root causes of trade errors and prevent them in the future
  • Use trade forecasting techniques to anticipate trade volumes and employ appropriate staffing levels
  • Use straight through processing for trade settlement when applicable

KPI Calculation Instructions Cost per FX Trade (Back Office)?

Two values are used to calculate this KPI: (1) the total cost of processing FX trades within the back office, and (2) the total number of FX trades processed during the same measurement period. Back office trade costs include labor, technology, occupancy and overhead related to affirmation, confirmation, clearing and settlement. Do not include costs related to trade initiation, delivery, risk management or order routing in the numerator of this calculation.

KPI Formula :

Back Office FX Trading Cost / Total Number of FX Trades Processed

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