OTAS Technologies has launched its real-time transaction cost analysis (TCA) system to help traders improve efficiency and cut costs.
TCA vendors are increasingly moving to offering real-time TCA to enable trading desks to get live feedback on their trading decisions to be able to instantly adapt their strategy based on past performance.
While TCA has traditionally been performed at the end of a month, week or day, traders have been keen to shorten the cycle to enable them to better meet best execution requirements. More recently, TCA has moved to providing regular intra-day reports and now real-time services are seen as the next big step in execution performance measurement.
OTAS said its system, called InTrade, will enable traders to react to trading benchmarks and identify orders to prioritise. It also features a flexible, modular design enabling users to design their own workflow according to their needs and preferences.
Trades that aren’t performing well can be spotted and traders can take immediate action to remedy them.
Tom Doris, CEO of OTAS Technologies, said, “Now in an environment of increased regulatory scrutiny, more competition and relatively low returns on equities, real-time TCA is becoming fundamental at buy-side firms to analyse the efficiency of their entire investment process.”