Electronic TradingVenue and Counterparty Analysis

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.

Outcomes

  • Improved order execution
  • Insight into venue performance by order type, instrument, and infrastructure conditions
  • Faster insight into venue conditions likely to impact intraday execution
  • More effective intraday control over venue selection/prioritization
  • Improved responsiveness to desk or customer inquiries about venue performance

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

IT Central Station Report

Best Practices for Trade Infrastructure and Execution Analytics

Free Download

Venue Analysis to Improve Execution

Real-time Analysis

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.

Anomaly Detection and Correlation

Understand changing conditions with historical baselining, machine learning and anomaly detection capabilities to proactively adjust order routing to manage execution.

Execution Quality Factors with Greatest Impact on Profitability

  • Fill rates
  • Latency
  • Cancellation rates
  • Reject rates
  • Cancellation speed/ notification
  • RFQ response time

Source: Greenwich Associates 2019 Customer Retention in the Age of Electronic Trading

Greenwich Associates Report

"The sell side must execute in haste but cannot conduct a performance analysis at leisure. It has to be live and, ideally, predictive."

Download the Report

Functionality Lacking from Venue Analysis Tools

  • Real-time analysis
  • Ability to see venue performance by order type
  • Peer analysis
  • Visualization tools
  • Ability to compare venue performance for all venues

Source: Greenwich Associates 2018 Venue Analytics Routing a Path to Best Execution


See What No One Else Can See

Schedule a Demo