TCA & Best Execution

NEW BIG DATA PLATFORM FOR TCA & BEST EXECUTION SERVICE

The new TCA & Best Execution platform has significantly reduced computing times and opens the door for users to generate custom ad-hoc reports on a specific order flow in a few seconds. Another of the improvements that has been incorporated has to do with traceability and data quality management.

TCA – TRANSACTION COST ANALYSIS SERVICE

• Compare total execution costs between brokers and algorithms
• Build ranking of merits between Brokers
• Compatible with any Front-Office system
• Confidentiality guaranteed by BME standards
• Broker neutrality and MiFID compliant

The TCA service will enable you to have in-depth knowledge of your implicit execution costs on those markets where you trade directly. It will also detail the real costs of your trading on the remaining markets where you trade through brokers.

TCA will allow you to generate reports on the destination and execution quality of your order flow, broken down by market, client, trader, broker, etc. All of this will allow you to know which brokers are providing the best execution or what implicit costs the clients that trade through you are supporting.

TCA is compatible with any Front-Office system and it is available for clients routing their orders through BME Inntech and also for clients using other providers but willing to provide BME Inntech with an executions information file.

Best Execution reports

Best Execution reports help to comply with RTS28 of MIFID II about Best Execution and Market Quality. This regulation affects to Investment Firms that execute orders for its clients or retransmit the order of their clients to other brokers.

Where the Investment Firm is the final executor of the order, the report must include:

• TOP 5 Execution Venues of the firm
• Market Quality analysis of the main trading venues where the firm negotiated or could negotiate to justify the trading venue selection.
• Detailed Execution Quality monitoring in the trading venues where the firm negotiated as a member.

Where the Investment Firm acts as order transmitter, the reports must include:

• TOP 5 Brokers where they are transmitting client’s orders
• Market Quality analysis of the main trading venues where the firm negotiated through brokers
• Detailed Execution Quality monitoring in the trading venues where the firm negotiated through brokers

With these reports, Investment Firms have quantitative metrics and statistical analysis of the Market Quality and Execution Quality of their current and potential liquidity sources, to properly justify their RTS28 Best Execution Policy based on data as required in MiFID II.