Chip Lowry Head of Global Link Europe at State Street.
Chip Lowry Head of Global Link Europe at State Street.

The Three Pillars of Superior Execution

Chip Lowry talks about Price, Process and STP.

In olden days, circa 1985, investment managers would execute foreign exchange transactions by separating trade tickets into different piles of like currencies, adding up the associated amounts, and calling banks for a price. A bank would later receive a fax (if it was lucky) with the associated breakouts and duly enter them by hand on their books and records. This was a very early example of the three pillars of supe-rior execution. The process was sorting the deal tickets; the price was on the phone from the bank; and straight through processing (STP) consisted of the fax machine. Today the three pillars of superior execution – price, process and STP – still exist, although perhaps in a less obvious state.As the FX business, the business practises surrounding FX, and the technology we use become more complex, balancing the pillars becomes more than just a science. It also becomes an art form. The science is easy to see from the abstract: Supe-rior_Execution = f(price,...continued

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