TABB Launches U.S. Equity Market Trading Venue & Routing Analytics Service

Tabb Group just upped the market data analysis service ante and is now providing more execution data to the equities marketplace.

Money managers, investors, brokers and trading venues alike can benefit from the new service, dubbed “Clarity,” which is designed to help money managers, institutional investors, brokers and trading venues standardize, gather, aggregate and analyze execution information and data across all major brokers.

Clarity already has several major participants such as Bloomberg Tradebook, Cowen and Company, Sanford Bernstein and Weeden & Co. signed on as partners to and advisory board members to develop the framework for analysis of execution information and data across major broker.

As partners, Bloomberg Tradebook, Cowen and Company, Sanford Bernstein and Weeden & Co. are non-financially incented firms helping to build out the product as advocates for greater transparency. Serving as Advisory Board members. According to TABB, they are working closely with seven major investment management firms and executives at TABB Metrics, a new data-driven division at TABB, developing an accurate, consistent framework for analyzing critical execution information and data, the benefits of which include increased transparency; streamlined workflow; consistent, cooperative analysis; enhanced broker-client relationships; and standardized output.

“In today’s fragmented US equities market with 54 trading venues,” says Larry Tabb, founder and CEO at TABB Group, “it is difficult for institutional investors to gain a clear understanding of how their orders are executed.”

Where and how orders are shopped, he adds, has a significant impact on information leakage, opportunity cost and quality of execution. “Traditional Transaction Cost Analysis metrics are insufficient to determine the true costs of trading,” Tabb said.

Clarity has been developed to help institutional investors understand the complexities and intricacies of broker venue and routing data by putting this massive amount of information into context. This enables money managers to work with their brokers to improve their execution quality and brokers to work with their clients to better appreciate the challenges and costs of execution.

“The problem is,” Tabb says, “investors are increasingly requesting execution and routing information from their execution partners but most buy-side firms lack the expertise to know exactly what to ask for, how to analyze the massive stream of information and more importantly, how to interpret the results.”

Under the guidance of the Clarity Advisory Board, senior-level representatives from the investor and broker communities will meet regularly to develop a common set of definitions, standards and analytics that will be applied to all brokers and investors in a clear, transparent fashion.

Other Clarity Advisory Board member-firms will be announced shortly, Tabb said.