Broker-dealers and asset managers have begun to develop transaction cost analysis (TCA) systems for bonds and foreign exchange, driven by upcoming European and US regulations that require more accurate data and improved transparency across all asset classes. The TCAs, which are being developed in partnership with the International Monetary Fund, will be used as a tool to help investors understand how their investments compare against other assets or currencies.
Broker-dealers and asset managers have begun to develop transaction cost analysis (TCA) systems for bonds and foreign exchange, driven by upcoming European and US regulations that require more accurate data and improved transparency across all asset classes. The push to enhance trading analysis will be helped by electronic platforms able to compile diverse data clearly, according to Hubert de Jesus, co-head of electronic trading and market structure at BlackRock.