ITG Integrates Consolidated Data From Europe into TCA Service

ITG runs post-trade analysis against a consolidated tape, including data from primary exchanges and MTFs across Europe.

Investment Technology Group said that its transaction cost analysis (ITG TCA) would be based on data taken from primary exchanges and the new multilateral trading facilities (MTFs) across Europe, effective immediately.

ITG said it’s the first specialist TCA provider to offer European transaction cost analysis based on unified data from all key traditional and alternative venues — employing a so-called ‘consolidated tape’ against which to run post-trade analysis. The moved follows calls from clients seeking a more complete picture of their trading costs, according to the release.

ITG is responding to the implementation of the Markets in Financial Instruments Directive (MiFID) regulations, which has led to a surge in the number of alternative share trading mechanisms coming into the market, noted the release. Amongst those that have attracted the most liquidity are Chi-X and Turquoise, and according to some statistics, (i.e., Fidessa Fragmentation Index), these now account for some 15 percent of turnover in the United Kingdom.

Commenting on the development, Michael Sparkes, managing consultant at ITG’s analytical business in Europe, “The consequences of market fragmentation for data and its users, were not fully anticipated by the regulators at the time MiFID was introduced. It has been a problem for our clients and we are pleased to offer a solution.” Sparkes continued, “More and more of our clients and their brokers are using alternative trading venues and so they need their ITG TCA data to reflect the ‘whole market’ picture. That is now possible.”

In addition to ITG TCA, consolidated data will be used in other ITG products such as ITG Alpha Capture, Radical and Triton execution management system. ITG TCA clients will be able to view the results of trades in any time horizon, in any currency and in any configuration. The whole process is based upon a standardized and consistent methodology developed over the last two decades, according to the release, which noted that ITG’s TCA service has over 300 of the leading asset managers as clients.