Commentary

Ronald Jordan
Traders Magazine Online News

Understanding Your Data is No Longer Optional

In this contributed article from Global Markets Advisory Group, the advisory discusses the importance of data and how organizations should augment existing skill sets and capabilities to add a data-focused perspective to their operating fabric.

Traders Poll

Do you expect SEC Chairman Jay Clayton to push for regulation in the cryptocurrency issuance and trading markets?

Yes

74%

No

5%

The CFTC will push for regulation

21%

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April 1, 1998

At Dedline - Transaction Audits

By John A. Byrne

Measuring trade execution quality is not new. But an upstart company based in Northpost, N.Y., is pulling out the stops to nab business, measuring trade execution quality for orders of 5,000 shares and more.

The Transaction Auditing Group (TAG) started the service last month, offering to measure the trade execution price against the midpoint between the bid and asked price. This measure, commonly referred to as liquidity premium, is a topic of popular discussion in academia.

"Liquidity premium is a very intuitive measure of trade execution," said Charles M.C. Lee, an accountant and finance professor at Cornell University. "This measure provides another dimension by which to analyze and measure trade execution quality."

TAG's audits evaluate trade execution against a number of measures, including price improvement, order fill, liquidity and timeliness. TAG has established an industry advisory board dedicated to fostering a dialogue on issues that affect best execution.