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ICE Data Services launches best execution for fixed income in EMEA

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Intercontinental Exchange’s (ICE) ICE Data Services has expanded coverage for its best execution service to include sovereign and corporate bonds in Europe, the Middle East and Africa (EMEA).

Best execution leverages ICE’s fixed income Continuous Evaluated Pricing to measure best execution, and offers a trade-by-trade measure of execution quality relative to comparable market transactions.
The launch of best execution in EMEA comes as European regulators are moving to expand transparency in fixed income securities. In particular, the Markets in Financial Instruments Directive II (MiFID II) formalised rules that require investment firms to maintain records quantifying the transaction quality of their counterparties. By quantifying trade-by-trade execution quality versus comparable transactions, the independent metrics provided by the best execution service enables firms to demonstrate compliance with MiFID II requirements.
Best execution uses a scoring methodology that allows clients to see how their trades stack up against comparable transactions across maturity, sector and issue, among others, by using a simple percentile ranking. Traders, portfolio managers and compliance officers can employ the service to monitor trading activities across venues and protocols, and to conduct transaction cost analysis (TCA) in fixed income markets.
“At a time when regulations are playing a larger role in financial markets, best execution offers innovative analytics that measure the execution quality of trades and meet the mounting demands of managing regulatory compliance requirements,” says Lynn Martin (pictured), president and chief operating officer of ICE Data Services. “Built from our continuous evaluated pricing platform, best execution provides a new level of transparency into the fixed income markets and helps meet our clients’ expanding risk management needs.”

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