However,
execution costs cause proportionally larger return variances when measured using short intervals.
This would contribute to higher trade
execution costs for investors; greater difficulty in obtaining liquidity; higher borrowing costs for corporations, homeowners, and governments; and higher costs of equity capital for firms issuing common shares.
And the likely strengthening of best execution will support unbundling, thereby offering a more transparent cost structure and more accurate measurement of
execution costs.
7bn notional of OTC derivatives through TRL Exchange, achieving significant reductions from their usual
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.
It's become critical for the sell side to leverage their services, whether research or low
execution costs, to remain relevant to their client base.
a[umlaut]Hence, the opportunity to reduce
execution costs is higher than in other markets.
The teams pay
execution costs and earn interest on cash and dividends on securities.
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.
According to Andy Nybo, a TABB principal, head of derivatives and author of the study, "Hedge funds are using direct market access (DMA) and algorithms as their preferred method of finding liquidity, not only because of their more complex strategies, but as a result of traders' need to reduce
execution costs with higher turnover activities.
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.
Using Portware FX, First Quadrant can both manually and algorithmically trade against a centralized book of streaming quotes from global FX dealers, driving increased trading efficiencies and reducing
execution costs.
