TCA in the Investment Process: An Overview

Abstract

Kissell outlines the current state of evolution of Transaction Cost Analysis (TCA) in today’s dynamic marketplace. Matured beyond its roots as a basic trading cost estimator or post-trade cost analysis reporting tool, TCA has morphed into a dynamic, real-time information-rich platform that offers greater opportunities for alpha capture and nuanced, strategically effective order management. Kissell highlights the many ways that TCA can add value for the single stock trader, the algorithmic trader or strategy engine, the portfolio or quantitative trading desk, and the portfolio manager.