Investment Technology Group has introduced a web-based research tool which allows traders to calculate transaction costs in real time. Transaction Cost Analysis will mean portfolio managers and traders do not have to wait for research reports to find out what a particular trading approach has cost them and their clients, the company said.
It said measurement of trade execution costs was one of the most important elements of performance evaluation and also one of the least analysed. Investment managers tended to rely on limited quantitative evaluation coupled with qualitative assessments of the performance of various brokers, the company said.
ITG’s analyser lets traders factor in trade and liquidity difficulties while evaluating trading performance against a broad choice of benchmarks.