Trading cost system launched
A new trading cost analysis service for European-based pension funds has been launched by the WM Company and Elkins/McSherry. The service is one of the products available to European pension funds and investment managers that measure the impact of trading costs on investment returns.
The new product, Elkins/McSherry Global Trading Cost Analysis will partly use information supplied by Bridge Information Systems, which deals with daily equity prices and trade volume figures for about 35,000 securities in 42 countries, using the details of 150 funds. For each trade the price paid is compared to the average price that day, after which the difference is calculated as a percentage of the price of the stock to give the basis point cost. The result is the market impact that forms, together with the commission and the fees, the total trading cost.