Best execution is about to get better on buyside-owned trading venue IEX.
Abel Noser Solutions, a provider of transaction cost analysis data, will provide IEX with models and equity data to better evaluate subscriber performance and execution quality on its venue. The goal – create a better execution experience on IEX.
“By providing proprietary data and analysis to IEX, including fill level analysis that measures data up to the millisecond, Abel Noser Solutions is confident that we can help the platform validate its approach and enhance execution quality analysis,” said Ted Morgan, Chief Operating Officer of ANS.
TCA is a process which looks at how well exchanges, brokers, crossing networks and institutions execute trades. ANS collects, aggregates and benchmarks data from over 500 clients to see who has the lowest execution costs. The company makes that determination by looking at “slippage”-or the difference in price when an order was placed and when it was executed-as well as taking into account commissions, fees, bid-ask spreads and taxes.
Increasingly, TCA also evaluates specific execution venues in an effort to detect information leakage and adverse selection. The company will then provide this data to IEX on a quarterly basis in order for IEX to enhance analysis of trading on its own market as compared to that on other venues.
In January 2015, IEX averaged volumes of 133 million shares, or roughly 1% of all equity trading volumes.
