• Overview
• Basic Transaction Cost Models

Execution / Transaction Cost Analysis

Penserra Securities prides itself on using advanced quantitative techniques to develop implementation strategies and execute both single stock and program trades. A cornerstone of this philosophy is the effective forecasting of trading costs using sophisticated Transaction Cost Analysis (TCA). The primary purpose of TCA is to understand the liquidity and risk characteristics of a trade before the order is executed. Our sophisticated TCA model allows us to identify potential trouble spots before we begin to trade and allows us to formulate a unique trade strategy to maximize trade performance. After trading is completed, Penserra conducts a detailed measurement of each execution to determine the performance of the trading exercise. By following a continuous modeling cycle of research, construction, measurement, and modification, Penserra is able to maintain the highest level of efficacy with the TCA application.