TradingScreen will offer the world's “second-largest” transaction cost analysis (TCA) universe following the acquisition of an exclusive licence to service institutional users of Citi's multi-broker post-trade Best Execution Comparison Services (BECS) product, according to the execution management system (EMS) provider.
Robert Kay, head of analytics, said the deal will “materially enhance the breadth and depth” of TradingScreen's TCA universe, thereby helping to enhance the quality of the service and analytics available to clients. “This is a further statement of TradingScreen's intent to provide a wider range of analytics and consulting services, as well as technology,” Kay said.
Agency broker and technology provider ITG is currently the leading provider of TCA services globally.
TradingScreen already offers two TCA services: TCA-in-a-Box, an off-the-shelf service provided to its EMS users; and itero, a TCA service offered by GSCS Information Services, which was bought by TradingScreen in February 2010.
Kay added that BECS, TCA-in-a-Box and itero would be migrated to a single technology platform at an as-yet-unspecified point following discussions with clients.
Following the agreement with Citi, TradingScreen will oversee all multi-broker post-trade analytics for BECS, but will not be responsible for pre-trade cost-estimation services, which will still be delivered by Citi.
“This licence will allow Citi to deploy an independent TCA capability to its large client base in a very easy manner while providing them with a new level of service and integration,” said Philippe Buhannic, CEO, TradingScreen. “This transaction represents a very important step towards the TradingScreen goal of offering a one-stop-shop destination for large institutional clients across the globe.”
Dan Keegan, global co-head of electronic markets at Citi, said, “We are pleased to partner with TradingScreen for licensing of the BECS multi-broker post-trade system. Their expertise will benefit our clients as we focus on the execution capabilities offered by the LavaFlow ECN, ColorBook smart order router, Citi Match dark pool, options and equities market making, and Citi's algorithmic product suite.”
Acquired by Citigroup in April 2004, BECS is a web-based system that was fully-owned, but independently managed by Citigroup Global Markets.
GSCS Information Services has provided quarterly TCA data to The TRADE since the publication's launch and continues to do so following its acquisition by TradingScreen
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