BestEx Research Group, LLC, an independent, high-performance algorithmic trading company created by industry trading veteran Hitesh Mittal, is pleased to announce the launch of its complete end-to-end, multi-asset class, global trading solution combining expert consultation with sophisticated execution algorithms, a backtesting platform and TCA in a broker-neutral model. Additionally, Abel Noser LLC, the agency-only brokerage subsidiary of Abel Noser Holdings, will make BestEx Research execution algorithms available to more than 500 global fund managers.
“BestEx Research is a new business model that is revolutionary in its impact and approach to solving the problem of performance drag in active fund managers’ returns due to high transaction costs. Our broker-neutral approach allows buy-side firms to utilize our high-performance solution while continuing to execute with the broker-dealers of their choice. Execution algorithms offered by banks and brokers have not evolved in over a decade and are stale, opaque and conflicted with their own internal liquidity pools, leaving managers to pay as much or more than management fees in implicit costs. Our next generation platform significantly cuts down these costs with iterative measurement and a systematic, quantitative approach to execution,” said Hitesh Mittal, founder and CEO.
Developed over three years, the company is focused on providing institutional fund managers with highly sophisticated execution algorithms and offering them with transparency, privacy, and a simplified workflow in a broker-dealer neutral approach. BestEx Research’s end-to-end solution includes a TCA system that is designed to measure and continuously reduce transaction costs by attributing them to every aspect of the orders an algorithm places such as venue, timing, size, price, and order type. Their simulation platform allows analysis of algorithm behavior over months of tick data while simulating the exact rules of each exchange in each market, thus eliminating the trial and error approach typically taken by the industry. BestEx Research provides its clients a web dashboard that allows full transparency and control over algorithm behavior. In-house consultants use these sophisticated tools to work with clients to further customize their high-performance execution algorithms for each portfolio manager’s unique alpha and risk profile.
“We are extremely pleased to partner with BestEx Research in the distribution of their execution algorithms to our buy-side investment managers. BestEx Research is bringing innovation and a proactive methodology in defining optimal prices and routes for execution to limit spread cost and market impact that will be well received by the institutional marketplace. Abel Noser’s DNA is in cost analytics and BestEx Research dovetails very nicely because it specifically limits the factors that create slippage costs and allows us to customize and backtest these strategies for clients in a seamless way,” said Doug Rivelli, President of Abel Noser, LLC.
“We aim to decouple execution algorithms from brokers and banks so institutions have choices and complete transparency into how each execution takes place. To date, a few sophisticated buy-side firms have built a subset of these capabilities in-house, but most firms have relied on standard broker algorithms. With our pure software model, hedge funds and asset managers can significantly reduce trading costs through customized high-performance execution algorithms and have enormous flexibility in bank or broker selection,” said Mittal.