Exchange group NYSE Euronext has launched TradeCheck, an online service that allows users to establish whether they have achieved best execution on 18 European exchanges and trading venues. The company will add more venues according to client demand.
TradeCheck is aimed at small- and medium-sized trading firms on the buy- and sell-side, and is designed for use by both the trading and compliance departments of those companies. NYSE Euronext said the solution allows customers to optimise and demonstrate the quality of trade execution, and ensure they meet both customer requirements and their obligations under MiFID.
Clients can use TradeCheck to analyse single or multiple trades executed on one or more markets, in one or more currencies, at a particular time or over a specific period. The solution can then generate execution analysis statistics and tailor-made reports for its customers’ clients.
The TradeCheck solution comprises three tools. Execution Quality gives an instant analysis of a trade compared to the market, helping firms to demonstrate that they have achieved best execution in pre-defined markets and currencies. Transaction Cost Analysis measures the trade against different valuation benchmarks, such as VWAP, over a defined period and then calculates execution performance. Order Book Replay allows users to analyse the depth of the market around the time of the trade or order by rebuilding the order books for one or more markets and replaying them forwards and backwards.
TradeCheck was developed jointly with UK software house Intelligent Financial Systems. It is available either online through a secure website, or as an XML package.