Case Study: Transaction Cost Analysis (TCA)

[[Buy vs Build]]

A large sell-side firm has received client feedback that order execution is strong, but performance analysis is lacking. The lack of Transaction Cost Analysis will affect their ability to improve their ranking with clients.

Challenges

• Clients want custom reports and the ability to compare performance between brokers.
• ‘Stickiness’ with client is critical.
• Not very many vendors in this space for partnering or acquisition.
• System must be Global.
• Internal trading technology is highly proprietary.

Solution

After surveying the marketplace for vendors, and performing a thorough review of a mature vendor, a build solution was designed and implemented.  We leveraged the existing infrastructure.  Security and client agreements were designed to protect the clients data relieve concerns over potential conflicts of interest.

Results

• Hundreds of clients have successfully used the platform to analyze trading performance.
• The firm has been able to objectively demonstrate superior performance in algorithmic trading.
• New value delivered by integrating proprietary performance measurement models.

Please do contact us if you would like to discuss this case or TCA in more depth.