24 February 2018
Visit www.avoka.com

FIX Trading Community publishes initial guidelines of TCA best practice for equities

11 February 2014  |  961 views  |  0 Source: FIX Trading Community

FIX Trading Community, the non-profit, industry-driven standards body at the heart of the global electronic trading community, today published recommended guidelines for Transaction Cost Analysis (TCA) in Equities.

The recommended guidelines for TCA in equities is the result of work by the FIX TCA Working Group to address the challenges currently faced by market participants to determine the cost of trading at any or all points in the investment cycle. There are multiple methodologies and terminologies in current practice, which can result in a lack of transparency and objectivity while producing contradictory results.

To address these concerns, the TCA Working Group polled the members to determine the specific problems. Two of the most important items identified were the need to create a glossary of industry acceptable TCA terminology and to define a standardised set of best practices to allow for a more consistent evaluation of transaction costs. The approach has been to focus on core concepts as broadly as possible while targeting a mainstream audience.

The benefits of this initiative will be industry-wide, spanning the buy-side, sell-side and vendor communities. The initial scope of the project has focused on equities, given that TCA has dominated this asset class for a number of years. However, the benefits will eventually be expanded to cover futures and options, foreign exchange and fixed income sectors.

Given that this is the initial release of guidelines by the TCA Working Group, Co-Chair Michael Napper, Director and Head of Global Client Analytics Technology, Credit Suisse and Global Client Connectivity Technology, wanted to emphasise that readers should embrace the entire document to gain a better understanding of its overall value.

He stated, "While the initial focus has been the glossary of terms, we have also provided TCA perspectives based on market structure and industry segment. Additionally, we have also taken the approach to recommend best practices where feasible while recognising some issues may never easily be standardised. Going forward, we will investigate the possibility of enhancing the FIX specification to facilitatte the TCA data collection process." 

Comments: (0)

Comment on this story (membership required)

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit www.vasco.comvisit www.nextgenbanking.co.ukRegister for the webinar

Top topics

Most viewed Most shared
Ripple makes new connections to emerging marketsRipple makes new connections to emerging m...
11785 views comments | 16 tweets | 10 linkedin
hands typing furiouslySome Interesting Applications Of The Inter...
10325 views 3 | 9 tweets | 1 linkedin
Basel Committee outlines disruptive fintech scenariosBasel Committee outlines disruptive fintec...
8563 views comments | 15 tweets | 26 linkedin
Investment Association sets up fintech accelerator for asset managersInvestment Association sets up fintech acc...
8088 views comments | 19 tweets | 10 linkedin
R3 creates Legal Centre of Excellence for blockchain technolgyR3 creates Legal Centre of Excellence for...
7770 views comments | 10 tweets | 14 linkedin

Featured job

Competitive base + commission
London, UK

Find your next job