Understanding the true cost to your trading desk
On 11 December, Albert Bauer, Head of Products, Citco Fund Services (USA) Inc, spoke at a Bloomberg AIM event in New York on ‘Understanding the True Cost to Your Trading Desk’.
Transparency around "non-traditional" transaction costs is becoming increasingly crucial to the buy-side’s understanding of the overall cost of trade execution. As a result, commercial arrangements developed between buy-side, sell-side and third party vendors are in flux.
Al highlighted that the integrity of data impacts the overhead costs of operations, namely the trading desk and the middle-to-back office operations and inconsistent data can later create reconciliation problems down the line.
Efficacy and cost of executing a trade doesn’t stop at the trading desk; recorded data will make its way down to the admins, and if these files are not clean, it will impact the cost and operational efficiency down the line.