Waters Rankings 2015: Best Transaction-Cost Analysis System Provider ─ ITG
ITG has won this award both years that it's been on offer.
![dsc-0905-app dsc-0905-app](/sites/default/files/styles/landscape_750_463/public/import/IMG/417/323417/dsc-0905-app.jpg.webp?h=b5924a95&itok=0Xi077SX)
TCA's premise is simple: It is a tool designed to provide clients (buy-side firms) and service providers (brokers) with a means of objectively measuring performance across a number of metrics, including the effectiveness of algorithms, the quality of executions according to venue/liquidity pool, and the efficacy of order-routing strategies, to ensure that future trades can be optimized based on past performance. In short, it's a bit like looking back at past experiences to ensure that future outcomes are all the more favorable.
Not only is TCA important for buy-side and sell-side firms' performance, but it also has a regulatory component in that brokers and asset managers have regulatory and fiduciary responsibilities to their clients (end-investors) to prove that best execution guidelines were followed when executing trades, as required by the Dodd-Frank Act in the US, and Mifid and EMIR (the European Market Infrastructure Regulation) in Europe.
New York-based Investment Technology Group's (ITG's) TCA platform wins this year's best transaction cost-analysis system provider category, following up last year's success, making it the only third-party technology vendor to have won this category in the two years it has been on offer.
The platform, which supports TCA calculations for both equities and FX, features a four-pronged approach that includes regular feedback so that firms can adjust their algorithms and trading strategies with the minimum of latency; ITG's proprietary Agency Cost Estimator model, designed to monitor implicit trading costs, along with spread and price impact; "slippage detection"-the difference between the price that was initially expected and the price achieved at the point of execution-so that more informed execution decisions can be made; and reports covering compliance issues and performance across trading destinations and individual brokers.
There has been a lot of talk recently about Markit preparing to launch a TCA tool for fixed-income trading, a move that is likely to ruffle feathers and raise the bar for all incumbent providers, as buy-side traders look to the fixed-income market as a source of alpha. ITG will certainly be aware of this and will be watching developments in this space closely, no doubt preparing to extend its TCA expertise to the fixed-income market, too.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Awards & Rankings
Waters Rankings 2024 winner's interview: Vneuron
Vneuron Risk & Compliance won the best AML compliance solution provider category in this year’s Waters Rankings.
Waters Rankings 2024 winner's interview: Cloud9
Cloud9, part of Symphony, won Best trading floor communication system provider category in this year’s Waters Rankings.
Waters Rankings 2024 winner's interview: AI Risk
New York-based AI Risk won the Best cyber security provider category in this year’s Waters Rankings.
Waters Rankings 2024: Best performance measurement and attribution system provider—FactSet
Product/service: FactSet Performance Solutions
IMD & IRD Awards 2024 winner's interview: Tradeweb
Tradeweb won Most innovative market data project in this year’s Inside Market Data & Inside Reference Data Awards.
IMD & IRD Awards 2024 winner's interview: S&P Global Market Intelligence
S&P Global Market Intelligence won Best corporate actions data initiative in this year’s Inside Market Data & Inside Reference Data Awards.
Waters Rankings 2024: Best outsourcing service provider—Northern Trust
Product/service: Integrated Trading Solutions