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Babelfish Analytics Launches ClarityReveal Routing and Venue Robo-Consulting Tool

Traders Magazine Online News, May 14, 2018

John D'Antona Jr.

Babelfish Analytics, an unconflicted, independent provider of venue routing and analytics, has launched ClarityReveal, a new automated consulting application that addresses the growing demand for its multi-broker Clarity venue and routing advisory service.

Used as a stand-alone robo-advisory performance evaluation tool or in conjunction with its Clarity full-service consulting services, ClarityReveal analyzes the entire execution process. Most venue analysis products only look at fills, which can be as little as 1% of the total available data, while Clarity and ClarityReveal evaluate both the unfilled and filled routes. The result is a comprehensive look at strategy efficiency—and the only way to truly understand how to connect algorithm action to overall performance. Both Clarity consulting and ClarityReveal utilize the proven Babelfish methodology to help keep assets in their clients' investment vehicles that would otherwise be lost through trade execution. 

What makes ClarityReveal unlike typical transaction cost analysis tools is that it distills the consulting experience into highly effective dashboards that tell a story about the data. Instead of presenting tables and charts of reorganized and rehashed data, ClarityReveal presents actionable answers, similar to the guidance that a trader would gain by sitting with our highly experienced strategy consultants. By using ClarityReveal, traders can understand issues like:

• The efficiency and associated costs with what sequence an algorithm uses to route to venues;
• Whether or not a broker's internalization practices are adding to or detracting from performance; 
• If transaction fees and rebates are commensurate with best execution metrics; and
• How to effectively apply minimums to maximize fill rates and minimize toxicity.

Additionally, ClarityReveal provides broker-specific reporting that enables traders to share analysis to their execution partners and form the basis for productive and quantitatively informed discussions about customizations to algo technology. This platform is the first of its kind to provide a roadmap for algo enhancements, with an incorporated framework for iterative experimentation, monitoring, and ongoing analysis.

Linda Giordano, Co-Founder and CEO of Babelfish Analytics said, "We created the venue and routing analysis space because we fulfilled a critical need for transparency into the routing process. ClarityReveal is the next step as it democratizes the process and enables more firms to access this vital information that not only helps a trader add value and makes the trading process more efficient, but puts money back in their clients' pockets in the form of improved alpha. Every trader should be looking at this "last mile" form of TCA and both Clarity and ClarityReveal offer the ability for everyone to understand how to work with their brokers to better tailor their algorithms to their specific order flow." 

The expertise and framework that underpins the platform is the culmination of decades of leadership in the TCA industry. The founders of Babelfish created venue and routing analysis and helped the industry prepare and cleanse their data. It is not only critical to insure that the analysis produced is accurate and reliable, but that contributed data remains secure and used only for its designated purpose. 

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