The transition management industry has changed dramatically in recent years. Major regulatory changes have taken place alongside an increase in trading complexity as the universe of counterparties and trading techniques expands continually. First in the US and latterly in Europe, the equity trading environment has also become more fragmented with the emergence of dark and light liquidity pools and rival trading platforms to existing exchanges, such as Chi-X. Trading, which is one of the key components of the success of a transition, remains as important as ever and, if poorly implemented, could add important costs to the overall transition. It is, therefore, crucial that transition managers establish the optimal trading strategy to restructure all assets and that the right tools are used during trade execution. In this new environment, transition managers must be able to combine risk and project management with best execution in compliance with the EU’s MiFID (Markets in Financial Instruments Directive). Successful transition managers should be able to access all sources of liquidity (light or dark), crossing networks and various exchanges towards achieving best execution. To face these new challenges, transition managers have developed algorithmic trading platforms, mainly based on the implementation shortfall approach. These algorithms not only offer access to liquidity and best execution but also ensure client anonymity throughout the entire transition process. By carefully using the right trading tools, transition dealers are better able to control cost and risk while ensuring best execution to the clear benefit of the underlying client. ...

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