A New Approach for Measuring Bond Trade Execution Quality
Our Best Execution service utilizes our Continuous Evaluated Prices to help traders, portfolio managers and compliance officers to more closely monitor trading activities, meet regulatory compliance requirements, and measure trading effectiveness across the growing number of venues and protocols.
Our Best Execution score provides a trade-by-trade measure of relative execution quality. The score is a percentile rank of trade vs. comparable transactions in the marketplace. You can use the Best Execution Score calculator as a pre-trade screen for proposed trade prices or as the basis for a thorough review process to help improve the effectiveness of your fixed income trading processes and your compliance requirements for regulations such as MiFID II in Europe, and FINRA Rule 5310 and MSRB Rule G-18 in the US. Knowing this score enables you to implement procedures for handling trades with scores that fall outside preset thresholds.
Best Execution is available as part of VantageSM, our Transparency portal, offering you insight into the characteristics of each trade. Best Execution scores are computed across four categories of comparable trades, beginning with all bonds of comparable maturity; this group is then divided by industry sector and issuer. The final score is based solely on trades in the selected bond.
Integrate Best Execution scores into compliance processes using the APEX® Web Service API. Build your own reports to measure trade execution performance across the trading operation.
The gold line can be used to set a minimum acceptable score for a pre-trade price check or as a threshold in a post-trade check for outliers or use the Best Execution calculator to find the price that will deliver your desired score.
The Best Execution Score is included in a TRACE blotter, providing further context around market conditions at the time of each trade (where applicable).
Use the trade blotter upload tool to easily assess the performance of all your trades. Pop them up into the calculator for a more comprehensive review.