ITG has launched a web-based program that tracks the performance of global equities trades in real-time. The transaction cost analysis program, dubbed the “Smart Trading Monitor,” enables institutional traders and portfolio managers to watch global equity execution performance throughout the trading day, in real time.
Before this tool, transaction cost analysis was done on an ad-hoc basis, said Kevin O’Connor, managing director in ITG’s analytics group. By providing real-time analysis, institutional traders can immediately change or modify their trading strategies to achieve best execution and trade more efficiently.Institutional traders and portfolio managers can now monitor trader and broker execution performance across a broad range of benchmarks and regions, taking into account historical and current market conditions, as well as the statistical deviation between them. The tool provides users the ability to rapidly identify outlier or sensitive trades, drill down for specific context at the broker, venue or security level, and take corrective action if necessary. “This system is intended to focus on trade analytics seen during the day,” O’Connor said. “It’s a more lightweight graphical view of trading.” This differs from other TCA services ITG offers that delve deeper into order and allocation data that it collects, he added. TCA is performed on an institutional trader’s parent order that is sent to the either the execution broker or directly to a trading venue. Trade data is sourced from ITG’s broker-neutral network; either its own order and execution management system or other third party systems. The tool provides users the ability to rapidly identify outlier or sensitive trades, drill down for specific context at the broker, venue or security level, and take corrective action if necessary. The trading monitor is currently in use with ten institutional clients.The monitor analyzes order and execution data that is routed over ITG Net, which uses the Financial Information Exchange messaging format, and can be integrated with ITG’s Triton execution management system and order management systems. The service is the latest tool in ITG’s suite of pre- and post-trade analytics for traders and portfolio managers.