Summary
Recognizing the growing importance of trading performance to buy-side institutions, Greenwich Associates surveyed institutions in the U.S., Canada and Europe about their use of TCA tools, the effectiveness of these tools and shortcomings that limit TCA’s utility. Based on this new Greenwich Market Pulse, we compiled a list of steps that buy-side institutions, broker-dealers and third-party vendors can take to improve the effectiveness of TCA.
Analysis
“Ultimately, institutions will judge the value of TCA on one factor: Does it improve investment returns?” says Greenwich Associates consultant John Colon. “Right now, there is no clear consensus on that count, but our research has identified specific improvements that would help make TCA a more effective tool for measuring and improving the performance of buy-side trading desks.”
