TCA (Transaction Cost Analysis)
Investment Managers, Regulatory Compliance Professionals and Traders are obliged by the regulators to take “All sufficient steps” to facilitate the execution of transactions at the best possible price. This has been upgraded in MiFID II from “Reasonable steps”.
The reporting or chain of command may be different but the responsibility is inherent in all Financial Institutions. TZ is here to redress the balance and to give transparency throughout the process so that errors in execution can be addressed and resolved and not left to become systemic risk.
- Provides access to your own data for immediate historical analysis and archiving.
- Assess performances in Best Execution under different verticals i.e. Brokers, Teams, Platforms and Counterparties etc.
- Implementation Shortfall and the Transactional Cost of executing and whether swift order routing would have facilitated a better execution price or a “wait and see” approach in the face of high liquidity on the opposite side of the price.
- Calculating an “Arrival Price” versus the “Actual Execution Price” to indicate the “Implementation Shortfall Cost”
- Calculating “End of Day” versus the “Arrival Price” to show the gain or loss to the Portfolio Manager vs the “Implementation Shortfall Cost” for analysis.
- Multi-Venue tracking for execution prices and liquidity.
- Total Access to all data stored in TZ and therefore the ability to data mine at any stage and formulate reports and Tests in seconds.