T. Rowe Price adopts ICE’s bond TCA

Asset manager will use ICE Data Services’ for best execution in fixed income.

T. Rowe Price is set to use ICE Data Services’ best execution tool to evaluate fixed income trade execution quality and improve its transaction cost analysis (TCA).

The best execution service provides continuous evaluated pricing and trade-by-trade measurement of execution quality relative to comparable market transactions.

“It is critical that our clients have confidence that we are addressing evolving financial regulations and working to continuously review and enhance our execution quality,” said Alexander Sedgwick, vice president at T. Rowe Price.

ICE Data Services president and COO Lynn Martin added the technology allows clients like T. Rowe Price to see how their trades ‘stack up’.

“As global regulatory regimes governing best execution change, our services such as best execution offer greater transparency and help meet customers’ expanding risk management and reporting needs,” she said.

Fixed income participants are expected to face short-term difficulties using TCA for best execution due to a lack of data and reference points.

Speaking at an industry event hosted by ICE Data Services and The TRADE, panellists agreed the concept could be applied, but they determined achieving true best execution is more difficult for fixed income than equities markets.

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