Seems like everyone is getting into TCA nowadays…

…but it feels like many of the current providers are pushing tools that traders have already said that they do not want.

Transaction cost analysis (TCA) tools have been around for a while, but haven’t been very relevant for traders because most are backwards-looking rather than optimized for making buy and sell decisions. This made most TCA tools useful only for a historical compliance function and portfolio construction, rather than providing tools to shape intra-day trading decisions, which traders want.

The recent flood of OMS providers into the TCA space aren’t producing solutions that will help matters, since OMSs tend to lack sophisticated tools for real-time execution (hence the need for an EMS), which also reduces the effectiveness of those platforms for providing trader-optimized TCA.

FX week covered this issue recently – take a look here.