Equiduct, the pan-European equity trading platform, has updated its OrangeLFA service that now analyses not only which trading venue offers the best price, but also takes into account execution fees charged by each of the relevant venues.
The new release provides all financial players with a sophisticated tool to support their Best Execution Policy according to MiFID requirements. Equiducts OrangeLFA clearly shows that on the incumbent exchanges, in between 20 % to 51 % of all trades missed Best Execution when taking into account Best Price and execution fees. Nevertheless, to execute trades only on the new trading platforms does not guarantee Best Execution either. They miss the best result for the client in between 20 % to 34 % of all cases.
MiFID has been created to give clients the best possible result when trading securities in Europe, says Artur Fischer, joint-CEO of Equiduct. Therefore it was only logical to also open the market to MTFs (Multilateral Trading Facilities), thereby stimulating competition between trading venues for the benefit of clients. As a consequence, fees dropped and still are decreasing.
Therefore, fees have become an even more important factor when analysing where an execution should have taken place for the benefit of the client. By taking into account the execution fees of each venue, OrangeLFA finally enables all market participants to know pre-trade where they can expect Best Execution.
This is an unnecessary monetary loss, continues Artur Fischer. To profit from decreasing fees and find the Best Price has become really easy now with OrangeLFA showing market participants where they can ultimately find the best deal when trading European equities.
L.D.