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Transaction Cost AnalysisENHANCED DATA & PERSPECTIVE
A powerful tool to provide insight into trading performance
Tradeweb transaction cost analysis (TCA) is a performance measurement tool accessed via InSite that allows users to evaluate their executions on Tradeweb against the proprietary Tradeweb composite, and assess the strengths in their fixed income trading.
Key benefits of TCA on InSite:
• Flexibility: Use the InSite screens to customise reporting based on trading strategy/methodology
• Instructive: Provide detailed analysis on how users can improve their trading performance by reducing transaction costs
• Enhanced best execution: Tailor analysis to provide in depth evaluation of organisation’s best execution requirements
The Tradeweb advantage
• Trusted composite and reliable data from the largest fixed income dealer-to-client trading platform
• Tradeweb is uniquely positioned to provide an accurate reflection of transaction costs due to the precision of its composite and execution levels
MetricsThere are three metrics for evaluating performance. Each metric can be weighted on a volume, risk or trade basis.
Cash transaction cost
Positive values represent a cost and negative ones a profit per million for trades during the period defined by the user for each category.
Basis point transaction cost
Positive values represent a cost and negative ones a profit in basis points for the trades during the period defined by the user for each category.
Execution level as a percentage of the bid offer spread
Values on the right of the mid line represent a profit compared to the mid. Values on the left of the mid line represent a cost compared to the mid.
Key features:
TCA can be measured by three proprietary metrics:
• Cash transaction cost
• Basis point transaction cost
• Percentage of the bid-offer spread
Analyse trading data based on:
• Sector
• Trade size
• Number of counterparties in competition
• Time of day
• Execution protocol
• Fund
Available across all Tradeweb tradable cash bonds including:
• European government bonds
• European credit
• Covered bonds
• Supranational, agencies and sovereigns (SAS)
• U.S. Treasuries
-100€ Mid 100€Cost per million
PROFIT COST
Mid 1.5001.0000.500-0.500-1.000-1.500
PROFIT
COST
COST
PROFIT50%Mid
100%B/O
ENHANCED DATA & PERSPECTIVE
About Our Institutional Markets We are a leading global marketplace for institutional fixed income and derivatives electronic trading. Tradeweb operates markets in 20+ asset classes, providing access to the deepest pools of liquidity from 50+ leading market makers to the world’s top asset managers, central banks and other institutional investors.
For more information: In Europe: +44 (0)20 7776 3200 europe.clientservices@ tradeweb.com
In North America: +1 800 541 2268 [email protected]
In Asia: Tokyo +81 (0)3 6441 1020 Hong Kong +852 2847 8030 Singapore +65 6417 4532 [email protected]
www.tradeweb.com
©2015 Tradeweb Markets LLC. All Rights Reserved.
This communication has been issued and approved by Tradeweb Europe Limited, which is authorised and regulated in the UK by the Financial Conduct Authority, in Japan by the Financial Services Agency, in Hong Kong by the Securities and Futures Commission, and in Singapore by the Monetary Authority of Singapore.
January 2015
Summary report
Cash transaction cost view
Execution level as a percentage of the bid offer spread view
List view
Bps transaction cost view
Graph view
Dealer vs. Cover reportThis report shows the level users have traded as a percentage of the bid-offer spread with each dealer. The cover price can be viewed as a percentage of the bid-offer spread, so you can see the % saving compared to the cover dealer.
