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Robert Schuessler
Traders Magazine Online News

A Smarter Monkey

In this contributed piece, TIM noted that some traders do better than others when using data that has been run through certain analysis - that is, have used some form of machine learning to assist them.

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June 5, 2013

ConvergEx Offers Real-Time TCA on Child Orders

By John D'Antona Jr.

ConvergEx Group has begun to offer clients detailed transaction-cost analysis in real time for every child order sent, not just the initial order.

Its prior TCA systems could only provide cost analysis on each order filled, not those sent. And it could do this on the parent order level only, said Craig Lax, chief executive officer of G-Trade, ConvergEx's global electronic execution business.

Not so with the new TCA system, dubbed PerformEx. This system can analyze the routing history of an order, all its child orders and the costs associated with getting each child order filled-or not filled, said Lax.

"Clients' demand is for transparency-complete transparency around the fills and the misses," Lax said. "That's what they want and are getting it in real time on every order."

PerformEx offers trade analysis at every stage of a trade, from when an order is created through to the transaction itself and then settling of details and payment. Then it determines its cost to the buyside.

The system looks at a multitude of factors now that are updated instantaneously, including: order destination route; shares sent, filled and unfilled by route; percentage of orders sent to each route; and executions by each price point in the market.

By offering more detailed and real-time TCA, buyside traders can adjust their strategies and increase trade performance and efficiency, he said.

 

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