Transaction cost analysis (TCA) can have very positive effects on everything from trading to the investment process, if it is implemented well. However, while equity TCA is relatively mature, there are serious challenges in other asset classes, which require traders to track down robust data sources and conduct rigorous appraisals of the metrics to be used in order to extract the greatest value from those services.
Kevin O’Connor, head of analytics and workflow solutions at Virtu Financial, outlines the benefits and best practices that buy-side firms can achieve when their traders use TCA effectively, and offers his insights into the key hurdles that need to be overcome.
17. September 2019