Investment Operations

Aite Matrix for Multi-Asset Class TCA Providers: Diamonds in the Rough

ChatGPT Artificial Intelligence for Corporate Actions

A plethora of macro forces has pushed the adoption of transaction cost analysis, finds a new Aite Group report.

Regulatory pressure, including the Markets in Financial Instruments Directive (MiFID II), and the need to quantify trading cost to achieve best execution have motivated the high adoption rates of TCA solutions by both buy-side and sell-side firms over the past few years. Most recently, the COVID-19 pandemic has accelerated the speed of electronification across all asset classes in an unprecedented trading environment. Meanwhile, the development and use of advanced technology for trading and analytics have also had an impact on TCA, exacerbated by 2020 market conditions. The latest Aite Group report, Aite Matrix for Multi-Asset Class TCA Providers: Diamonds in the Rough, explores some of the key trends within the TCA market and discusses how technology is evolving to address new market needs and challenges.

“TCA vendors that have the capability to support true global multi-asset classes on a single application are driving the most investment and effort,” states Audrey Blater, research director at Aite Group. “The expansion is particularly focused on fixed income TCA and other OTC products as more pricing and trade data has become available,” she adds.

Leveraging the Aite Matrix, a proprietary Aite Group vendor assessment framework, this Impact Report evaluates the overall competitive position of seven vendors, focusing on vendor stability, client strength, product features, and client services. This report profiles Abel Noser Solutions, BestX, Bloomberg LP, GTA Babelfish, IHS Markit, ISS LiquidMetrix, and Virtu Financial.

For more information about the report, contact