While Trade Cost Analysis (TCA) provides execution context and quantifiable benchmark performance, we feel strongly that determining Best Execution goes further and includes organizational components, business practices, routing logic, and transparency.
Our nimble and cutting-edge technology solutions are critical to delivering best execution. We have built proprietary OMS and EMS solutions that help us adjust to fluid market dynamics, enter the market efficiently, and analyze Best Execution in real-time.
Our Management team and Best Execution Committee meet regularly to discuss best business practices, order routing, execution quality, and market structure changes. These processes should be understood and discussed between brokers and managers.
Data storage and communication are critical to the buy-side sell-side relationship. Transaction Cost Analysis, FIX tag support, trade and quote data, should be elements of a continuous conversation.
At Weeden & Co., our firm’s structure and practices are specifically designed to provide transparent, un-conflicted results for our customers. We view both public and private venues from an investor’s perspective, valuing liquidity and anonymity.
Separation of Labor
At Weeden, separating sales and trading responsibilities provides the capacity and attention necessary to preserve alpha and our agnostic routing logic prevents conflicts of interest.
When assessing execution quality, the price an investor receives on any given transaction can be interpreted relative to a benchmark, but the execution methodologies used to arrive at that price, execution venue analysis, capacity, and timing speak to Best Execution Practices. Understanding these factors and capturing this data are integral to truly demonstrating Best Ex. Greenwich Associates Survey determined The Most Important Selection Criteria for Agency Portfolio Trading are:
- Capability of Sales Professionals
- Minimizing Market Impact