However,
execution costs cause proportionally larger return variances when measured using short intervals.
And the likely strengthening of best execution will support unbundling, thereby offering a more transparent cost structure and more accurate measurement of
execution costs.
Capital adequacy proposals in a new Financial Services Authority (FSA) discussion paper on banks' proprietary trading risks could increase
execution costs for their institutional investor clients.
a[umlaut]Hence, the opportunity to reduce
execution costs is higher than in other markets.
It is also very hard to get a view on the total volume in the market and what to hold your broker accountable for as its very hard to benchmark your exit rates and
execution costs.
To date, most new trading venues launched in Europe have targeted institutional flow only, but Randall believes that retail brokers are increasingly aware of the opportunity to differentiate to clients via lower
execution costs.
