Northern Trust releases trade execution analysis tool

Northern Trust releases trade execution analysis tool

Chicago-based custodian Northern Trust has launched an automated transaction analysis tool for institutional clients to access information on trading costs.

The 'trade execution analysis report' identifies the drivers behind fund trading costs including commissions, trade execution and local fees for equity holdings.

The report compares the daily prices of manager trades against the volume weighted average price (VWAP) and provides summary report information by manager, country, broker and total fund.

Jennifer Pechin, vice president, Northern Trust, says: "Either buying above or selling below this average price can detract from the value of a fund, and knowing the true execution costs can help fund managers better identify and analyse the drivers behind their fund trading costs."

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