Special Report

Best Execution & Transaction Cost Analysis

Regulation NMS requires that brokers and exchanges ensure best execution, but when multiple displayed venues have the same price, many institutions use algorithms to find an edge, or a better fill in dark liquidity pools. As such approaches become routine, some firms are working to incorporate alpha into their algorithmic strategies. But, for the moment, “there are maybe ten of us with sufficient infrastructures to build models seeking alpha,” said BNY ConvergEx’s Gary Ardell. Also in this report: Best-execution mandates are helping TCA become a ubiquitous feature of trading desks on both sides of the Atlantic; and developed markets in Asia-Pacific could soon have their own best-execution regulations.

Contents

Best-Execution Mandates Pushing TCA Adoption

Asia-Pacific: Best-Execution Regulations on the Way?

Race Is On for Alpha-Based Algos