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Leslie Kramer
Leslie Kramer
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NYSE Euronext Launches TradeCheck

NYSE Euronext offers a low-cost service enabling customers to evaluate equity trade execution in a range of European markets.

NYSE Euronext has launched a low-cost online service that enables its users to establish whether they have got the best possible deal when trading equities on 18 European exchanges and other trading venues. Aimed at small- and medium-sized trading firms, TradeCheck will enable asset managers and hedge funds, broker-dealers and compliance officers to assess, optimize and demonstrate the quality of trade execution cheaply, while ensuring that they meet their customers' needs and comply with the best execution requirements set out by the EU's Markets in Financial Instruments Directive (MiFID). As investment patterns become increasingly international, and trading venues proliferate, customers can use TradeCheck to analyze single or multiple trades executed on one or more markets, in one or more currencies, at a particular time or over a period in the past. TradeCheck can then generate execution analysis statistics and tailor-made reports for its customers' own clients.

TradeCheck offers three analytical tools to assess a trade: execution quality gives an instant analysis of a trade compared to the market, it helps firms to demonstrate that they have achieved best execution in pre-defined markets and currencies; transaction cost analysis measures the trade against different valuation benchmarks (such as volume weighted average price) over a defined period and then calculates execution performance, it takes into account market impact and the implicit costs of trading (like the size of the bid-offer spread) as well as explicit costs (such as trading fees); order book replay allows users to analyze the depth of the market around the time of the trade or order by rebuilding the order books for one or more markets and replaying them forwards and backwards in time.

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Exclusive: Inside the GETCO Execution Services Trading Floor
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