TradingScreen Inc. announced the launch of a real-time transaction cost analysis tool for multiple asset classes, noting that its latest system will help traders pinpoint the best venues for trades at the lowest possible cost.
The TCA will provide traders with graphical monitoring of executions for large orders - particularly when algorithms are used, said the company, which designs and builds execution management systems.
"The background for this exercise is to do more of what traders want, which really is to monitor their trades and algos in real-time to get a sense of how they're doing as they're doing it," Jon Fatica, TradingScreen's head of analytics, said in an interview. "It's pretty clear that with as much fragmentation as there is in the markets today, knowing where an algo is placing your trade and what venue you're being exposed to is a good thing."
The system also includes a heat map, which is designed to help traders more effectively monitor all of the securities that may be on a trading blotter.
"If market conditions are affecting one security in particular, it might just jump off the page with some highlighting," Fatica said of the heat map functionality. "That, in essence, is advice and counsel to a trader. The market conditions are shifting and this is a place for them to apply their best judgment and not miss an opportunity."
And with a growing number of both traditional and alternative asset managers now trading across asset classes and geographies, they can now turn to TradingScreen's real-time TCA as an early warning system for rapid, adverse market movements, the company added.
TradingScreen's real-time offering will now even provide analytics for the traditionally dealer-driven FX market, an asset class for which demand for such services in growing, according to Fatica. "It's a dealer market, so basically those venues are dealers. You can monitor which dealer has the best price."