Most TCA false due to input data, says GreySpark
Transaction cost analysis results vary dramatically, depending on the data source and input used by the analytics provider
Buy-side firms are getting a false picture of their execution quality if the transaction cost analysis (TCA) provider they use relies on a single or limited number of data sources to define the mid-rate, which, according to financial consultancy GreySpark, most providers do.
While the debate surrounding best execution and TCA has mainly focused on methodology, little attention has been paid to the data inputs used by various providers to calculate results, which can differ dramatically
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