TORA announced a partnership with Markit to integrate the latter’s pre- and post-trade transaction cost analysis (TCA) tools into the former’s order and execution management systems.
By adding Market’s TCA system into its own trading system, Compass, buysiders will be able to see pre-trade analytics in their order blotter. The data items available include the market impact cost estimate and the standard deviation of that estimate, which shows the expected cost of implementing the position.
Earlier this month, Traders reported Jefferies has chosen Markit to provide its trade-cost analysis software.
Markit’s TCA platform offers a complete range of analytic and decision support tools to assess the quality and effectiveness of a company’s equity and foreign exchange trading activity. The platform verifies, compares and calibrates the performance of brokers, algorithms and trading technologies.
What makes Markit different is that its TCA platform deploys a more granular methodology that measures cost on a fill-by-fill basis. According to Markit, this approach allows for an attribution analysis that identifies the portion of the trading cost arising from the trader’s own concession for liquidity for an institutional size order versus the cost resulting from actions of other market participants.
