Measuring Best Execution
We know that the role of the buy side manager has never been more complex, more challenging or more competitive.
In addition to allocating assets and selecting investment vehicles that generate alpha consistently, in order to remain competitive, we know investment managers must secure and document best execution practices and transaction costs.
While ‘best ex’ is a term that often has different meanings to different managers, and measurement protocols may vary, best ex is universally expected to fall within the parameters of “..securing best price given prevailing market conditions and optimal liquidity in the most cost effective and cost efficient manner…”
Not only do you have a fiduciary obligation to ensure best execution, but most investment managers and registered investment advisors must also conform to ever-increasing regulatory obligations that address the topic of measuring best execution.
Much like other industries, sourcing product and negotiating prices is integral to your profitability. Within the financial markets industry, this also requires navigating fragmented markets. For most brokers it is cumbersome to navigate fragmented markets, source liquidity at the right price, and document best execution. At WallachBeth, however, each of these services is part and parcel to meeting the needs of our customers.
As an agency-only broker whose only agenda is to efficiently source liquidity and secure best execution on every order entrusted to us, our interests couldn’t be more aligned with the interests of our customers; we both share fiduciary and regulatory obligations and we both share the need to demonstrate, in an unbiased manner, that we outperform our respective competitors.
This is exactly why WallachBeth has partnered with Markit's QSG®, the securities industry’s foremost provider of independent trade performance and transaction cost analysis (TCA) tools. Together, we provide our clients with a highly secure, easy-to-navigate dashboard application that provides a full-suite of real-time analytics and SEC required reports (e.g. Rules 605, 606, 611). We deliver transparent, unbiased, comprehensive order execution and transaction cost analytics.
The QSG®-powered WallachBeth application is provided as a courtesy to our clients; the features of this system include easy-to-understand execution analysis that is segmented into order, symbol, trader, index and aggregate levels, to name a few. The evaluation of block orders, high-dollar value orders, and not-held orders effectively provides execution transparency in exactly the manner that meets the needs of the most regimented compliance professionals.
In addition to reporting modules, standard and proprietary statistical measurements include, among other topics:
For additional information on arranging access to this reporting system, please don’t hesitate to call our trading desk.
As the industry evolves, our institutional and buy-side clients expect and deserve ever-more transparency. Necessarily, this includes the need for accurate and timely management of commission-related record keeping and reporting.
Our mission, therefore, is to continuously provide our clients with the highest level of customized services that can minimize their administrative workload. With our high-touch personalized approach, we accommodate all of the unique features that buy-side clients demand; from invoice approval and expedited vendor payments, to custom reporting.