S3, a financial services software company for fixed income securities, equities, and options, announced that it has enhanced its Fixed Income Execution Quality Suite (the Suite) with the addition of contra reporting functionality.
The new contra reporting capabilities provide customers with greater insight into the trading activity of their counterparties, which is especially beneficial when grading counterparties on their executions immediately before and after the executions of a given client using S3s Suite.
Customers are now able to analyze buy and sell orders from various counterparties over time, and thereby to identify trends. This enhanced analysis enables the development of more sophisticated trading strategies, as clients can now identify how the activities of specific counterparties impact their own trading operations. The introduction of contra reporting furthers S3s initiative to implement expanded functionality beyond its industry-leading best execution analytics offering, diversifying the Companys product portfolio while providing clients with additional market insights.
Mark Davies, CEO of S3, commented on todays news, Our new contra reporting functionality goes well beyond reporting to regulators, and it enables clients to determine the efficacy of their trading strategies at a more sophisticated level. Many firms operating within the fixed income market are particularly sensitive to positions taken by their counterparties, given the relative opacity of this market. The enhanced Fixed Income Execution Quality Suite enables these customers to conduct more refined due diligence in order to adapt their bond trading operations to best suit the needs of their clients.
Firms utilizing S3s Fixed Income Execution Quality Suite can measure the value of a given bond one to two days before a given trade, at the time the order is executed and the day after the execution occurs. Additionally, the new contra reporting capabilities allow customers to examine price changes for bonds they trade immediately before and after each execution, as well as any resulting spikes or declines in the price of the security. In order to enhance their trading operations, these clients require the ability to identify the strategies of their counterparties and to determine whether partnering with specific counterparties results in profits, or losses, over time.
Mr. Davies concluded, The augmentation of our Fixed Income Execution Quality Suite furthers our mission of promoting fairness and enhancing transparency by enabling customers to determine which counterparties positively impact their fixed income trades, and which have the opposite effect. Our contra reporting functionality for fixed income securities is available now, and we plan to introduce additional analytics capabilities for the fixed income space in the coming months as we continue to push for innovation in that ever-changing market.