31 Oct 2007
Thomson Financial Offers European Transaction Cost Analysis For MiFID Best Execution Compliance
Draws on 10 years Regulatory Compliance Expertise in US
London
Thomson Financial, an operating unit of The Thomson Corporation (NYSE: TOC;
TSX: TOC) and leading provider of information and technology solutions to
the worldwide financial community, announced that its leading Transaction
Cost Analysis (TCA) solution, Thomson Transaction Analytics, is available
in Europe to help clients fulfill MiFID (Markets in Financial Instruments
Directive) best execution obligations.
Following the implementation of MiFID, a crucial point of differentiation
and competitiveness will be a firm’s ability to demonstrate to the market
and customers, how it is able to set, describe and measure against its best
execution policy. Thomson Transaction Analytics offers clients in Europe a
hosted transaction cost analysis and web based reporting platform that
enables investment firms to prove compliance with their stated best
execution policy as well as to back test, evaluate and refine that
policy.
Over the last decade, Thomson Transaction Analytics has attained a leading
position in the US as an outsourced provider of SEC and RegNMS-compliant
best execution analysis, handling over 100 million transactions
daily.
Thomson Transaction Analytics receives clients’ order and execution data on
a post-trade basis and compares it against tick data to assess whether best
execution has been achieved. Integration with Thomson GlobalTOPIC Trader as
well as various third party OMS and back-office systems is supported out of
the box. Key capabilities include:
-
Post Trade TCA: includes statistics on the
quality of execution such as speed, cost, market impact, VWAP
shortfall, post-trade VWAP shortfall and more.
-
Execution Quality Reporting: includes
statistical analysis of actual trades in aggregate, segmented by
instrument, venue, order size, order type, trader, or other custom
defined groupings.
-
Best Execution Audit Trail: includes storage
and simple retrieval of historical order, transaction and relevant
market data on a tick basis along with pre-defined reports proving
adherence to policy.
- Policy Exception Reporting: includes rules based identification of trades that violated best execution policy parameters.
Miftah Khan, Vice President, Enterprise Solutions, Thomson Financial
commented: “While MiFID obliges firms to achieve ‘the best possible result
for their clients’, it is not prescriptive about measurement and this has
resulted in varied interpretations. We have amassed over a decade’s
expertise helping clients in the US deal with regulatory compliance and all
the nuances associated with trade analytics. Having consulted extensively
with clients across Europe, we have refined our solution to support both
existing as well as future Best Ex policies as the market continues to
evolve.”
Bill Haney, European Commercial Director added: “Recent research on MiFID
readiness from a Thomson IFR survey highlighted that all firms expect fines
for non-compliance from Q1 2008 and more than 68% of firms expect the first
client to challenge their “best execution” in the first quarter of next
year. Thomson Transaction Analytics will help European clients to satisfy
immediate MiFID compliance requirements while providing a flexible and
scalable platform that will enable them to take advantage of the
opportunities presented in post-MiFID markets."
About Thomson Financial
Thomson Financial, with 2006 revenues of US$2 billion, is a provider of
information and technology solutions to the worldwide financial community.
Through the widest range of products and services in the industry, Thomson
Financial helps clients in more than 70 countries make better decisions, be
more productive and achieve superior results. Thomson Financial is part of
The Thomson Corporation (www.thomson.com), a global leader in providing
essential electronic workflow solutions to business and professional
customers. With operational headquarters in Stamford, Conn., Thomson
provides value-added information, software tools and applications to
professionals in the fields of law, tax, accounting, financial services,
scientific research and healthcare. The Corporation’s common shares are
listed on the New York and Toronto stock exchanges (NYSE: TOC; TSX: TOC).
Contacts
Alex Brog
Director, Public Relations, Europe
Thomson Reuters
Tel: +44 020 7324 6986
Fax: +44 020 7566 1971
Email