Transaction Costs.
Liquidity and trading-cost estimation — how liquidity imbalances translate into cost and market impact.
What the trade will actually cost.
The Transaction Cost model gives a better understanding of how liquidity imbalances translate into trading costs — and their impact on market prices.
From a US trading-cost model to any market on earth.
It provides a method for extending any existing model of US trading costs to any market around the world, so implementation shortfall is estimated on consistent terms wherever a portfolio trades.
Cost here is not a flat spread bolted on at the end. Impact scales non-linearly with trade size and the time taken to trade, so the same framework that measures risk and return also tells you what capturing them will cost — turning a paper portfolio into an implementable, net-of-cost decision.
From risk and return to net-of-cost.
The cost layer that turns a paper portfolio into an implementable decision.
Cost scales with trade size and the time taken to trade — not a flat spread applied at the end.
Extends an existing US trading-cost model to any market worldwide, estimating implementation shortfall on consistent terms.
Estimates how real liquidity imbalances translate into trading cost and market impact.
The same framework that measures risk and return tells you what capturing them will cost.
One methodology.
Thirteen models.
Each model is independently subscribable, estimated on the same granular, adaptive factor approach Northfield has developed continuously since 1985. Everything, Everywhere spans the whole book; each of the others goes deep on one part of it.
The cost before the trade.
Trading-cost estimation, worldwide — since 1985.
Run Transaction Costs against your book — directly from Northfield, or through FactSet, Murex, Dynamo, and our other distribution partners.
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