Tightening up on Transaction Cost Analysis

An industry-wide focus on best execution and Transaction Cost Analysis (TCA), driven by Markets in Financial Instruments Directive II (MiFID II) and wider industry changes, should lead to a more informed buy-side.

Best execution is a well-worn concept in wholesale financial markets, and its pursuit is one of the common objectives that unites trading desks across asset classes. But with changes in market structure and regulation, as well as the increasing sophistication of asset managers and the technology available to them, best execution is a rapidly evolving discipline that is fast reshaping trading practices.