November 04, 2013

Hedge funds and other buy-side clients of Eze OMS will soon gain seamless access to Markit’s Transaction Cost Analysis Service, according to an announcement today.

Markit, the global information services company and Eze Castle Group, a provider of global investment technology, said that Markit’s TCA product is now available in Eze Castle’s order management system.

This is the first integration of Markit TCA into an OMS blotter, according to a spokesman for Markit. Several hedge funds are live and four or five funds, all U.S. based, are in the implementation stage, adds the spokesman.

Through this integration, Eze Software clients can leverage Markit’s TCA product to view pre-trade forecasts alongside their open orders in the Eze OMS trading blotter. After the trade is executed, the customer’s data is automatically processed by Markit’s TCA service to provide actionable trading insights that help reduce trading costs and identify liquidity, according to the release.

Two important Markit pre trade estimates will be visible within the Eze OMS trading blotter. One forecasts the market impact and the other provides an estimated standard deviation of the planned trade to show the expected cost of implementing the position. Customers can subscribe to the full Markit pre-and post-trade product set directly in order to receive additional reporting and analysis.

In a statement, Tim Sargent, managing director and head of equities at Markit, said: "The partnership means that customers will benefit from combining our world class trading analytics alongside Eze Software’s industry leading trading solutions at the point of trade.” In addition to the efficiency benefits this integration brings, “customers will be able to act on trading insights to reduce their trading costs and manage the cumulative price impact of their most complex order,” added Sargent.

Markit acquired Sargent’s firm Quantitative Services Group (QSG) in November of 2011 and has been making a big push into TCA, emphasizing its independence and track record for adding value to data through analytics.

[For more on Markit Offers Granular Analysis of Trades and Venues , see Ivy Schmerken's related story.]

“This integration provides customers with high quality trading analytics and valuable insight into the impact of trades on the market to help them optimize trading decisions and reduce associated costs,” commented Chris Corvi, director of project management of the Eze OMS for Eze Software Group.

In January of 2013, ConvergEX Holdings sold Eze Castle LLC’s popular Eze OMS along with RealTick LLC’s EMS and Tradar portfolio accounting engine to an affiliate of private equity firm TPG Group, a new financial backer with a focus on software.

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Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in ...