Instinet, the electronic agency securities broker, today reported that a survey of brokers by transaction cost managers Plexus Group had ranked it first in value-added for UK executions during the year ended in the first quarter of this year. The rankings are based on a comparative survey that compares execution quality for Instinet to a universe of brokers for which Plexus has data. Instinet adds that Plexus reckoned it contributed 49 basis points of value-added versus 33 basis points for the Plexus broker universe.
“One of the benefits of having Instinet as a broker are lower and measurable transaction costs achieved through the ability to trade anonymously,” says John Siska, Head of Equity Trading, UK, Instinet Europe Limited. “The results of this research provide proof of how reducing market impact and opportunity costs when trading can significantly return value to our clients and their investors and builds on Instinet’s reputation for quality of execution.”
The Plexus Broker Universe consists of over 1,100 broker-dealers used to trade orders by over 125 Institutional equity money management organizations with over $1.5 trillion in assets. The firm calculates execution quality by comparing actual execution cost to expected execution cost and expresses the result as “Value-Added.” Expected Execution Costs include Commissions plus the Trade Impact Benchmark; Actual Execution Costs include Commissions plus Trade Impact Cost. Execution Quality Value Added, Commissions, Trade Impact Benchmarks and Trade Impact Costs are calculated by Plexus. The brokers referenced comprise the ten most active for whom data is available from the Plexus Broker Universe.