Following the implementation of MiFID, a crucial point of differentiation and competitiveness will be a firmâs ability to demonstrate to the market and customers, how it is able to set, describe and measure against its best execution policy. Thomson Transaction Analytics offers clients in Europe a hosted transaction cost analysis and web based reporting platform that enables investment firms to prove compliance with their stated best execution policy as well as to back test, evaluate and refine that policy.
Over the last decade, Thomson Transaction Analytics has attained a leading position in the US as an outsourced provider of SEC and RegNMS-compliant best execution analysis, handling over 100 million transactions daily.
Thomson Transaction Analytics receives clientsâ order and execution data on a post-trade basis and compares it against tick data to assess whether best execution has been achieved. Integration with Thomson GlobalTOPIC Trader as well as various third party OMS and back-office systems is supported out of the box. Key capabilities include:
â¢ Post Trade TCA: includes statistics on the quality of execution such as speed, cost, market impact, VWAP shortfall, post-trade VWAP shortfall and more.
â¢ Execution Quality Reporting: includes statistical analysis of actual trades in aggregate, segmented by instrument, venue, order size, order type, trader, or other custom defined groupings.
â¢ Best Execution Audit Trail: includes storage and simple retrieval of historical order, transaction and relevant market data on a tick basis along with pre-defined reports proving adherence to policy.
â¢ Policy Exception Reporting: includes rules based identification of trades that violated best execution policy parameters.
Miftah Khan, Vice President, Enterprise Solutions, Thomson Financial commented: âWhile MiFID obliges firms to achieve âthe best possible result for their clientsâ, it is not prescriptive about measurement and this has resulted in varied interpretations. We have amassed over a decadeâs expertise helping clients in the US deal with regulatory compliance and all the nuances associated with trade analytics. Having consulted extensively with clients across Europe, we have refined our solution to support both existing as well as future Best Ex policies as the market continues to evolve.â
Bill Haney, European Commercial Director added: âRecent research on MiFID readiness from a Thomson IFR survey highlighted that all firms expect fines for non-compliance from Q1 2008 and more than 68% of firms expect the first client to challenge their âbest executionâ in the first quarter of next year. Thomson Transaction Analytics will help European clients to satisfy immediate MiFID compliance requirements while providing a flexible and scalable platform that will enable them to take advantage of the opportunities presented in post-MiFID markets."