Insight to Optimize Order Routing
Determining the effectiveness of each venue or counterparty is a key element in optimizing order routing decisions. With Greenwich Associates research showing increasingly intense buy-side analysis and reallocation, there is increased pressure on sell-side firms, and market makers, to optimize execution in line with buy-side scrutiny.
With Corvil, firms can compare venue and counterparty responsiveness in real-time as well as analyze their fill rates along multiple dimensions (e.g., by order type, by instrument, by client, by latency profile, etc.). These detailed execution profiles can inform venue selection decisions more effectively and identify opportunities to optimize routing.
Corvil also identifies anomalies and changes in venue and counterparty execution quality for early detection and response. Early knowledge enables more proactive and transparent communication with clients and traders, in the form of detailed reporting and suggestions for improving outcomes.
"Advances in algorithmic performance and execution quality can be made only with increasing investment in transparency – i.e., transaction analytics and venue and routing analysis."
Larry Tabb, TABB Group
Source: Greenwich Associates 2019 Customer Retention in the Age of Electronic Trading
"The sell side must execute in haste but cannot conduct a performance analysis at leisure. It has to be live and, ideally, predictive."
Source: Greenwich Associates 2018 Venue Analytics Routing a Path to Best Execution
"For different venues, depending upon the application, we have different requirements...Based on that, we can work with different markets or exchanges to match the timings. Or, we use a different routing logic within our application to be able to process the order at the same time. Based on this analysis and the statistics that we have, we can use it to match or change the routing logic that we have. There have been a few scenarios where we have done this."
Assistant Vice President, Financial Services Firm with 501- 1,000 employees
Monitor and compare venue execution, connectivity and technology performance in real-time.
Visualize, Analyze, Explore
Evaluate venue outcomes and performance with by session, symbol, customer, order type, fill rates, tech performance, etc.