Transaction Cost Analysis: Tracking the Current

Transaction Cost Analysis: Tracking the Current was published by Best Execution magazine.

Transaction Cost Analysis is following the route of trading electronification in its advance across asset classes, by Saoirse Kennedy

Post-financial crisis regulations and buyside client expectations are a central force in this shifting landscape that is driving a change in emphasis from post-trade TCA, to pre-trade and real-time TCA.

TCA is emerging as one of the next great talking points in the capital markets technology space, following in the footsteps of low-latency technologies, digital investment banking and swap execution facilities. This is driven largely by the buyside, and highlights the significance of cost control in a post-crisis financial industry that is just beginning to grasp the reality of its increasingly frugal existence. TCA should be considered as a renewed competitive differentiator with investment in a robust cross-asset tool essential in today’s climate. Next generation TCA solutions are rapidly becoming critical in a marketplace where increased regulatory demands can negatively impact returns.