In this section we describe how we define the execution chain and how to benchmark the two last levels.
It all starts with a decision to buy or sell. Depending of the size of the investment and the available liquidity – the execution objectives have to be selected. These objectives serve as inputs into the macro level of execution and typically involve dividing a big investment decision into smaller, more manageable parts. Each smaller part is then transmitted to an execution venue and will fight with all the other market orders in the order book. This is what we refer to as the micro level of execution.