Transaction cost analysis (TCA) has long been used by institutions to gauge the effectiveness of money managers’ trades.

A new survey of money-management industry members—including those from the buy side and sell side, as well as TCA consultants—shows the extent of their dissatisfaction with TCA.

In an interview, Jon Fatica, co-head of analytics for TradingScreen, cited the widespread use of volume weighted average price (VWAP) in TCA even though it is acknowledged to be a flawed approach because of the timing differences in calculating equity prices.

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Institutional Investor - Jay Akasie - December 21, 2011