The PRIIPs regulation has brought transaction cost analysis to everybody's attention. RiskConcile's TCALab provides a disciplined approach to the calculation of both explicit and implicit transaction costs of funds.
RiskConcile's TCALab can accurately and quickly handle these complex calculations and arrival price retrieval. During the onboarding of TCALab, we bring our data model in line with what our client has to offer. We adapt to the client, not vice versa. The model ensures that TCALab is ascertained with a robust connection to a data vendor who sources the arrival prices. After this, the transaction cost is computed very precisely for each of the trades and subsequently, it gets aggregated at the portfolio level as per the concerned regulations (both UK and EU). RiskConcile provides both the Slippage method and New PRIIPs type of transaction cost calculation. The Slippage method calculates the difference between the arrival and execution price of a transaction. The New PRIIPs calculation method provides an estimate of the implicit costs by considering a half-spread of each asset class.
Administrators and Fund Managers can submit executed transactions in a single trade file, in the format they prefer. Understanding that each portfolio management or fund accounting platform has its unique way of exporting transactions, RiskConcile offers exceptional adaptability. We map the received trade files into our proprietary data model, guaranteeing compatibility and efficiency in processing various data formats.
All trades undergo enrichment with tick history data (to determine the arrival price) and half-spread data, forming a crucial foundation for accurate transaction cost calculations.
TCALab performs transaction cost calculations for each trade and aggregates them at the fund level, providing a precise overview of your transaction costs.
TCALab enables users to thoroughly examine the final numerical results for a complete understanding. This detailed analysis includes automatic detection of outliers, and will generate warning flags based on client-defined thresholds.
Our specialized solution, TCALab, is carefully developed to assist you in accurately calculating transaction costs, PRIIPs metrics, and other vital financial indicators. Choosing RiskConcile means partnering with a dedicated ally committed to maintaining the highest standards of accuracy and transparency in your financial evaluations.