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Each transaction executed by TradeRisks shows the execution costs or the market value from mid-market of the transaction at the execution time. The execution cost is then translated into a spread over the mid rates. This is essential in order to measure treasury performance and evaluate the overall benefit of the transactions.

The execution cost of any financial transaction (or group of transactions) is simply the market value of the new financial instrument, minus the market value of the replaced financial instruments, if any, adjusted for any cash amounts paid received.

Financial transactions covered include loan facilities, bonds, and derivatives (whether embedded or standalone) and the market value is the standard net present value of projected future cashflows (using market implied rates and volatilities), with the discounting curve being, in the case of derivatives, the swap funding curve, and, in the case of loans or bonds, the cost of new debt expressed as a margin over mid-market swaps.

For more information on Treasury Execution Benchmarking.