Market impact costs

Market impact costs

The result of a bid/ask spread and a dealer's price concession. Also called price impact costs.
References in periodicals archive ?
Market impact costs - by only executing in liquidity pools that maintain pre-trade anonymity, POSIT Marketplace reduces information leakage to the market, a significant factor in managing trading costs.
However, these high-turnover, low-liquidity stocks face high transaction and large market impact costs.
Wall Street doesn't want investors to know that the easiest way to achieve that objective is to minimize all fund expenses--not only operating expenses, but trading costs, market impact costs, the cost of cash and taxes as well.
Market impact costs - by only executing in dark pools and therefore maintaining pre-trade anonymity, POSIT Marketplace reduces information leakage to the market, a significant factor in managing trading costs.
These orders will be immediately executable mid-point-only indications, typically delivering between 5 and 70 bps of direct price improvement, before any additional savings made by avoiding market impact costs - the hallmark of Liquidnet's global trading platform.
For each mandate, Knight Transition Management will seek to manage operational and opportunity risk as well as limit market impact costs.
In addressing the issue, we have helped institutions reduce their market impact costs, which ultimately benefits all of the individual investors who put their money into mutual funds and pension plans," Porter adds.
Following months of consultation with our Treasury futures and options customers, we are pleased to announce reduced tick sizes that will decrease our customers' total transaction costs, as well as new block trading facilities that will further expand our customers' execution choices while reducing market impact costs for very large orders.
It will take advantage of trading opportunities through a variety of order types and proprietary liquidity signals, while mitigating market impact costs, to provide clients with an intelligent, aggressive solution to trading orders where a high participation rate is demanded.
UNX trading is conflict-free and designed to help reduce market impact costs and to improve overall execution quality.
Our members face significant market impact costs when trading NZX-listed stocks because wholesale-sized trades in a small market can cause dramatic price changes," Macqueen said.
New research from TowerGroup finds that the integration of block crossing networks is aiding institutional traders in cost effectively pushing large blocks of stock, while cutting market impact costs and enhancing anonymity.