Transaction Cost Analysis (TCA)

regulatory compliance for modern markets

With the latest Markets in Financial Instruments Directive (MiFID II), investment managers, regulatory compliance professionals and traders are all now legally obliged to take “all sufficient steps” to facilitate the execution of clients’ transactions at the best possible price. This demonstrates a clear increase in severity from the original MiFID’s requirement that “all reasonable steps” be taken to this end.

This makes MiFID II transaction reporting and transaction cost analysis (TCA) essential in determining whether a transaction was completed at the best price for the customer.

Though the method of reporting or chain of command might alter in different financial institutions, TZ is here to provide transparency in MiFID II transaction reporting for a whole variety of firms. With TZ, errors in execution can be addressed and resolved quickly, and not left to become a systemic risk.

Key Features

Global multi-venue analysis

Calculation of arrival price or end of day price vs execution price

Implementation shortfall analysis

Immediate access to all data stored in TZ

Preset and bespoke reports

Best execution analysis against a number of different benchmarks

TZ is eflow’s complete post-trade surveillance platform. Ideal for trade surveillance and
compliance monitoring, our solution covers the regulatory requirements of MiFID,
MiFIR/MiFID II, MAD, MAD II, and EMIR and ESMA guidelines in Europe, as well as
Dodd Frank, Volcker Rule and MAD in North America.

why choose tz?

As MiFID II highlights, cost will still be considered as one of the key factors in execution quality for retail clients. The best execution for retail client orders is defined in ESMA’s MiFID II regulations as “the sum of the price and the costs incurred by clients” and represents “the price of the financial instrument and the costs relating to execution”. This includes “all expenses incurred by the client, which are directly relating to the execution of the order, including: execution venue, fees, clearing and settlement fees and any other fees paid to third parties involved in the execution of the order”.

TZ for Transaction Cost Analysis (TCA) moves with the customer and adapts to new regulatory requirements in real time, so you don’t need to worry about your compliance with new tests or reports. TZ for Transaction Cost Analysis (TCA) also allows you to look back and see the ‘lay of the land’ the trader saw, and decipher whether the correct procedure was undertaken in line with MiFID II and the institution’s best execution policy. The market data aspect of TZ enables you to to have prescient information prior to the trade being executed in retrospect.

 

For a free proof of concept, or to book
a demonstration, get in touch.

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