Babelfish Launches Transaction Cost Analysis for Asset Managers and Hedge Funds

Babelfish Analytics, the only un-conflicted, independent provider of venue routing and analytics, has launched ClarityAbsolute, a new service that addresses the critical demand for full-service, multi-broker transaction cost analysis (TCA.) With the shifting landscape of conflicted, broker-owned, and obsolete providers, Babelfish offers the best of all worlds-integrity, independence, and best-in-class methodology.

The founders, Jeff Alexander and Linda Giordano, have incorporated decades of TCA experience into ClarityAbsolute, which they view as their most advanced effort yet.

ClarityAbsolute finally solves the problem of performance attribution over the entire investment process with a proprietary model that benchmarks the entire trading life cycle from portfolio manager conception to venue fulfillment. ClarityAbsolute accomplishes this task by aggregating information from order management systems (OMS), execution management systems (EMS), and routing data from broker partners.

This level of detail is unmatched by any other TCA provider. ClarityAbsolute enables a trader to not only to pinpoint the source of costs, but to understand what action items are the most practical to prioritize, and to work with execution stakeholders to improve performance.

Linda Giordano, Co-Founder and CEO of Babelfish Analytics said, “We created the venue and routing analysis space to fulfill a critical need for transparency into the routing process. There has been significant interest in extending our cutting edge un-conflicted, analytical capabilities to analyze the entire investment process and ClarityAbsolute is the answer.”

Babelfish has invented a proprietary import process that allows ClarityAbsolute to ensure that data retrieved from buy-side OMS/EMS systems accurately represent workflow. Jeff Alexander, Co-Founder and President of Babelfish Analytics said, “Currently used extracts from an OMS or EMS frequently lead to garbage in/garbage out analysis, so we spend a lot of time ensuring that we understand how trading workflow is reflected in data files. We make sure we know when orders start and are finished, and how they should be benchmarked, as well as how follow-on orders should be analyzed.” Data is accepted from all major OMS and EMS vendors and over 30 brokers.

For those buy-side firms that want to transition from another TCA vendor to ClarityAbsolute, note that Babelfish can accommodate processed or raw historical data extracted from any TCA provider. We can also help to satisfy existing compliance, performance, or board reporting requirements. Please contact us for further information regarding your transitional needs.