BNP Paribas has announced a new partnership with best execution order analytics firm Itarle Group to provide its buy-side clients with independent transaction-cost analysis (TCA).
The bank’s buy-side clients will receive access to the Itarle Vision platform, providing real-time performance analytics for order decisions based on live flows, while potentially reducing costs during the order lifecycle.
Historical data is also available through the platform, while users will be able to review order quality via a mix of manual and algorithmic execution.
“With the implementation of MiFID II and further regulation anticipated addressing best execution, we believe this type of service will be expected across the industry and we are pleased to be leading the way,” said Gael Pottiez, head of product development, derivatives execution & clearing at BNP Paribas.
Independent TCA has seen a surge in popularity among asset managers following the introduction of new rules for best execution as part of MiFID II.
Shortly after the new regulatory regime was introduced, the use of TCA among equities traders saw a spike and was no longer considered optional, according to research from Greenwich Associates, while buy-side participants in the FX space have also recognised the value in such data.
Major sell-side institutions have also stepped up their TCA offerings since the start of the year, with banks either partnering with TCA providers or acquiring specialist firms, such as State Street’s takeover of startup BestX in August.