Best-Execution Mandates Pushing TCA Adoption
Regulations requiring broker-dealers to obtain the best price for their clients are helping transaction cost analysis, or TCA, become a ubiquitous feature of trading desks on both sides of the Atlantic.
In the U.S., 90 percent of traditional asset managers had adopted TCA by the end of last year, up from 69 percent in 2005, according to a March report from Tabb Group. That number stood at 70 percent in the European Union--a 7 percent increase from 2005--but is expected to grow to 87 percent by next year. In 2007, U.S. Regulation National Market System (NMS) became effective for market centers in March and brokers in August; the EU’s Markets in Financial Instruments Directive (MiFID) didn’t take effect until November.
|
||||||||||||||||||
