Buy-Side Traders Embrace Transaction Cost Analysis for Performance Edge
Transaction cost analysis (TCA) has evolved from a regulatory compliance tool to a mission-critical performance optimizer for equity traders. Nearly 85% of buy-side firms now rely on TCA to evaluate broker performance, according to Crisil Coalition Greenwich research. "In a world where every basis point counts, TCA is no longer a nice-to-have, but a must-have," says Jesse Forster, Senior Analyst at the firm.
The $9.5 trillion asset management industry increasingly views TCA as a competitive differentiator, with 90% of traders using third-party platforms for their cost-effectiveness and scalability. About 20% of firms have invested in proprietary systems, reflecting growing sophistication in execution analytics.