Saturday, June 6, 2009

TCA-based pay would alter buy-side traders’ behaviour – Greenwich

Fifty-seven percent of buy-side traders would change their trading practices if transaction cost analysis (TCA) played a larger role in determining their compensation, according to a new survey from consulting firm Greenwich Associates.

The survey, which asked institutions in the US, Canada and Europe about the use, effectiveness and shortcomings of TCA tools, also detected a reluctance to rely heavily on TCA when determining buy-side traders’ pay as a result.

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