Transaction Cost Analyses (TCA) are reports generated to quantitatively gauge the level of trade execution quality provided by a broker over a specific period of time. On a quarterly basis, SEI uses an objective third party and several proprietary transaction cost analysis systems to measure execution quality performance. For your convenience, all metrics and statistics included in our TCA reports have been clearly defined below.

Execution Time vs Submission Time
The results of an execution quality analysis can vary depending on the variables used to generate the report. An analysis based on EXECUTION TIME will measure the performance of a trade relative to the NBBO at the time the order is received at the market center destination. SUBMISSION TIME analyses capture the NBBO at the moment the order is submitted to the broker by the client.



NBBO
The National Best Bid or Offer reflects the spread between the highest price any buyer at any exchange/market center is willing to pay for a security versus the lowest price any seller is willing to accept. The NBBO percentage statistic represents the amount of orders that were executed at or within the NBBO spread.

Price Improvement
The price improvement percentage represents the orders, among those eligible, that were executed at prices better than the prevailing National Best Bid or Offer quote. This statistic gauges the frequency of a broker's ability to buy securities at prices lower than the quoted market offer/ask price, and likewise perform sells at prices higher than the quoted bid. Orders with NBBO spreads of 1 penny or less are not eligible for receiing price improvement.

Effective Spread
The midpoint of the NBBO spread is considered to be the market's best indication of the value of a security at any given instant. The effective spread captures the distance between the midpoint and the price an order was executed at by the broker. The figure is doubled to reflect a spread. The lower the effective spread, the closer the average execution was to the midpoint - and thus, the better the perfomance. Unlike price improvement percentages, the effective spread captures how often, as well as by how much, orders were improved.





Average Speed
Execution speed measures the average elapsed time in seconds between when an order is received by the broker and the time it is executed. [Note: Average speed on an Execution Time Analysis is based on order submission time for the purpose of relevance.]

Price v. Quote
Performance in terms of execution price v. quote reflects all orders, irrespective of price improvement eligibility. The statistic compares executed sells against the current National Best Bid price, and similarly buys versus the Offer/Ask. For all orders submitted to the broker, the percentages reflect performance in terms of AT / BETTER / WORSE relative to market quotes.

Routing
By accessing multiple execution venues, true liquidity and price improvement can be discovered and transaction costs reduced. The chart represents orders routed to the various market center destinations.

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SEI engages independent global financial consulting firms for trade execution analysis reports that are used as independent monitoring and management tools. Executions displayed represent market orders, orchestrated to the market by SIDCO through UNX's smart-order routing system, with share sizes between 100 to 9,999 shares, excluding pre-opening orders, and orders received during a locked, corssed or fast market. Additional details are available upon request. Extreme market conditions may effect trade execution, cost and performance. Brokerage services are provided by SEI Investments Distribution Co. (SIDCO), a registered broker/dealer, NASD/SIPC member, and wholly-owned subsidiary of SEI Investments Company, 1 Freedom Valley Drive , Oaks, PA 19456, 610-676-1000.