Fidessa group , provider of high-performance trading, investment management and information solutions for the worlds financial community, has announced the launch of Execution Cost Analysis (ECA) functionality for its US trading platform.
This new feature brings additional real-time analytics to the user desktop enabling US brokers to enhance the profitability of their execution strategies and strengthen their buy-side client relationships.
Fidessa’s ECA solution consists of a powerful cost-tracking engine that provides traders with real-time analysis of the exact costs of executing each order without affecting execution performance. It calculates, categorizes and aggregates spending per trader by share and venue, and also tracks the profit margins for each client, again by share and by venue.
ECA gives traders real-time, actionable information on the impact of their decisions regarding trading destinations and counterparties, and enables them to take control of their venue execution costs across complex billing structures and multiple liquidity sources. Using ECA, brokerage houses can identify sources of profit and loss.
For example, it can show whether an aggressive approach has proven profitable, whether the illiquid nature of a given stock justifies its execution costs, which venues are the most costly and what percentage of a buy-side commission is lost to execution costs. It therefore enables brokers to identify beneficial business lines and gives them a sound footing on which to negotiate commission rates with clients whose orders or instructions have an impact on margins.
(LB)