Investment Technology Group (NYSE:ITG), a leading agency broker and financial technology firm, today announced that with immediate effect its transaction cost analysis (ITG TCA) will be based on data taken from primary exchanges and the new Multilateral Trading Facilities (MTFs) across Europe.
ITG is the first specialist transaction cost analysis provider to offer European transaction cost analysis based on unified data from all key traditional and alternative venues - employing a so-called 'consolidated tape' against which to run post-trade analysis. The move follows calls from clients wanting a more complete picture of their trading results.
Since the introduction of the Markets in Financial Instruments Directive (MiFID) regulations in November 2007, there has been surge in the number of alternative share trading mechanisms coming to market. Amongst those that have attracted most liquidity are Chi-X and Turquoise, and according to some statistics* these now account for some 15% of turnover in the UK.
Commenting on the new development, Michael Sparkes, managing consultant at ITG's analytical business in Europe, said: "The consequences of market fragmentation for data and its users, were not fully anticipated by the regulators at the time MiFID was introduced. It has been a problem for our clients and we are pleased to offer a solution. At ITG we pride ourselves on being innovative and for responding quickly to the needs of our clients. We continue to invest heavily in new analytical processes and methodologies to provide the greatest possible insight into trading efficiency in the increasingly complex market landscape. More and more of our clients and their brokers are using alternative trading venues and so they need their ITG TCA data to reflect the 'whole market' picture. That is now possible"
In addition to ITG TCA, consolidated data will be used in other ITG products such as ITG Alpha Capture, Radical and Triton execution management system. ITG TCA clients will be able to view the results of trades in any time horizon, in any currency and in any configuration. Underpinning the whole process is a standardised and consistent methodology developed by ITG over the last two decades. ITG is the world's leading provider of transaction cost analysis services, with over 300 of the premier asset managers as clients.
*Fidessa Fragmentation Index - May 2008